The Recent Trends in Solana (SOL) Price
The cryptocurrency market experienced a period of consolidation over the weekend, with major cryptocurrencies exhibiting sideways action. Top tokens remained within a narrow price range, indicating reduced price volatility and a potential cooling-off period in the ongoing rally.
The recent trial of SBF, who faced seven charges and was found guilty, had a notable impact on Solana’s price. SOL lost over 5%, and the cumulative loss since the verdict stands at more than 12%.
Since a market surge, SOL price has been following an upward trajectory, forming a rising channel pattern. For the first time since July, Solana broke through a crucial resistance level at $28.16. This breakout led to a significant price surge, with SOL breaching multiple resistance levels and achieving new yearly highs. The price even attempted to challenge the resistance level at $46.83, a level last seen in August 2022.
However, this bullish rally was short-lived as bears pulled back the price, leaving a long wick on the chart. Subsequently, the price has been trading within a consolidated range of $38.77 to $42.50.
Technical Indicators and Analysis
On the positive side, the 50-day Exponential Moving Average (EMA) has consistently provided support to the price, suggesting the potential for a bullish reversal in the near future.
The Moving Average Convergence Divergence (MACD) indicator has shown a constant red histogram since the 3rd, indicating a strong bearish influence in the market. The averages are also steadily declining, suggesting that the price may continue to depreciate in the coming days.
Price Predictions and Analysis
Will SOL Price Cross $50 Soon?
If the bulls regain strength and break through the resistance level at $42.50, SOL’s price could regain momentum and aim for the upper resistance at $46.83. Maintaining a hold at this level might set the stage for an attempt to reach the significant resistance at $50 this month.
Conversely, a breakdown of the rising support trendline could result in a loss of momentum, with the price testing the support level at $38.77 in the near future. In the event of a trend reversal, the price could fall further to the lower support level of $33.29 in the coming days.
Additionally, if investor sentiment wavers due to uncertainty in this controversial crypto space, the coin could experience a price plunge, potentially testing the lower level at $24.25 in the upcoming weeks.