New Found Support Hints 8% Jump
Rising above the $22 resistance mark on October 1st, Solana (SOL) showcased a promising leap in its ongoing recovery trajectory. This surge not only surpassed a significant peak from the previous corrective phase but also hinted at a potential shift in market dynamics.
Current Recovery Trend in SOL
- A bullish breakout above the $22 barrier sets SOL for another 8% jump.
- The 24-hour trading volume for Solana coin stands at $402 million, indicating a 12% gain.
The cryptocurrency market, led by Bitcoin, has been facing challenges, causing many coins to struggle in their recovery efforts. Consequently, SOL retraced from its recent peak of $24.75, witnessing a 9% decline this week, bottoming out near $22.58.
However, this recent trough seems to have acted as a catalyst, sparking buying interest at the newfound support level of $22. This pushed SOL’s price by 3.9%, bringing it to the current value of $23.59. If this buying fervor continues, we can anticipate a further ascent of approximately 8%, targeting the significant resistance zone around $25.3.
Rising Channel Pattern and Future Projections
Zooming out for a broader perspective, it becomes apparent that SOL’s ongoing revival operates within the confines of a rising channel pattern. This formation has seen SOL’s price responding robustly to both its upper and lower boundaries, emphasizing the pattern’s influence on market participants. Adhering to this structure suggests that the coin’s resurgence might reach up to $36 before confronting the channel’s upper trendline.
SOL vs BTC Performance
Assessing the price fluctuations over the past half-year reveals that SOL’s valuation has exhibited pronounced volatility, especially when compared to Bitcoin. While Bitcoin’s price trajectory appears relatively horizontal, SOL’s movement mirrors this trend but with heightened amplitude in its peaks and troughs. Notably, amid the broader market’s bullish fervor, Solana coin has outperformed Bitcoin, registering significant gains in recent weeks.
Technical Indicators
- Bollinger Band: An uptick in the upper Bollinger Band reflects the aggressive buying momentum.
- Average Directional Index (ADX): The rising EDX of around 26% indicates that buyers have enough momentum to prolong the ongoing recovery rally.
