Solana Price Prediction: Will Selling Pressure Lead to a Pullback?
The Solana coin has experienced remarkable growth since mid-September, soaring from $17.41 to its current trading price of $31.99, marking an impressive 84% increase. However, this bullish momentum is currently facing resistance at the $34 level due to heightened selling pressure in the broader cryptocurrency market. This pressure is particularly notable as Bitcoin struggles to surpass the $35,000 mark. The question on everyone’s mind: will this overhead supply trigger a new correction?
Signs of a Potential Pullback
- A false breakout from the $32 resistance level indicates a potential minor pullback.
- The SOL price might encounter significant supply pressure at the $36 mark.
- The 24-hour trading volume for Solana is $539 million, indicating a 43% loss.
Examining the daily timeframe chart reveals that Solana’s price has been trading within a rising channel pattern, sustaining a long-term uptrend. Under the influence of this pattern and prevailing bullish momentum, the coin price could surge by 12% to reach the overhead trendline around $36.
Although the asset recently reclaimed the $32 level, the presence of overhead supply seems to be hindering further upside, hinting at a possible minor pullback. At present, the SOL price trades at $31.83, with a modest growth of 0.3%.
Historical data indicates that previous pullbacks never dropped below the 50% Fibonacci retracement level. This suggests that any upcoming pullback might find support around the $25.7 mark, revitalizing bullish momentum.
Potential Scenario: SOL Price Falling Back to $20
In the near term, the SOL price appears to be on a bullish trajectory. However, investors should remain vigilant for significant selling pressure around the $36 resistance level. The asset has historically faced substantial selling pressure upon retesting the upper trendline of its channel pattern, currently situated around $36. Previous encounters with this resistance have led to major corrections, and a similar situation could potentially cause the price to plummet to the $20 range.
Technical Indicators
Moving Average Convergence Divergence (MACD): The MACD (blue) slope moving above the signal line signifies a strong bullish trend in this asset.
Average Directional Index (ADX): The ADX slope at 49% indicates that the current recovery may be approaching maturity, suggesting that a pullback is necessary to sustain a long-term uptrend.
