The Rise of Solana (SOL) Above $22.4 Support Level
The cryptocurrency market has been rife with fear, uncertainty, and doubt (FUD) lately, but amidst this backdrop, Solana (SOL), the ninth largest cryptocurrency, has shown resilience by maintaining its position above the crucial $22.4 support level. This surge has propelled SOL into the spotlight as a standout altcoin during these bearish times, having rebounded twice from the $22.4 support in the past three weeks, thanks to strategic accumulation by market participants.
Solana Price Analysis
Examining Solana’s daily timeframe price chart reveals a prominent double bottom pattern formation. This pattern typically emerges when the market reaches a bottom and establishes robust support, paving the way for a sustained rally in favor of buyers.
Following the bounce from the $22.4 level on August 7, SOL’s price surged by 8.8%, reaching $24.36, a value in close proximity to current levels. With this chart pattern in play, it is foreseeable that the leading altcoin’s value will experience a 5.8% upswing, breaking through and surpassing the overarching resistance at $25.7. This breach might trigger heightened buying pressure, potentially driving the price to ascend further, even reaching the $29-30 range. This would mark a remarkable increase of around 24% or more.
Possible Retracement to $18 Levels
Conversely, in the event of a fresh pullback to the $22.4 support, SOL’s price could enter a period of lateral consolidation within a narrow range. Despite the prevailing buying pressure poised to uplift the price, a sideways movement indicates a somewhat weakened bullish momentum.
Savvy sellers within the Solana ecosystem may seize the opportunity presented by this uncertainty, potentially pushing the price below the critical $22.4 support level. Should this scenario unfold, a pullback leading to a decline to $18.7 might be in the cards.
Additionally, the ascent from the lower boundary of the Bollinger Band (BB) indicator serves as an additional bolster for buyers. Moreover, the potential for the Relative Strength Index (RSI) slope on the daily price chart to surge beyond 60 reflects the prevailing positive sentiment among buyers, signaling an optimistic outlook.
