Solana (SOL) Price Breaks Key Level: A Market Analysis
Solana (SOL) price recently traded above $20.00, reaching $20.50 after a bounce from the $18.40 level earlier this month.
Investors are now questioning whether bulls can take advantage of the positive sentiment surrounding Solana to push the price even higher.
Solana’s price has reached a significant technical level, with the 24-hour upside to $20.50 retesting a 10-day high, which is an area of previous support and resistance. In the past 24 hours, Solana has shown an impressive nearly 4% increase, outperforming most of the top ten cryptocurrencies by market cap, except XRP.
Bitcoin, on the other hand, has fallen below $27k due to the latest SEC delays in decisions on multiple spot ETF applications, including that of BlackRock. Ethereum also experienced a dip despite news of the listing of the Valkyrie ETH futures ETF, falling to near $1,700, while whales are positioning themselves for a likely upswing.
What’s the Outlook for Solana?
With a market cap of $8.3 billion, investors are curious about Solana’s future prospects.
SOL Price: What’s Next for Bulls?
Solana’s price uptick today coincides with SOL bulls aiming to maintain position above an ascending trendline support anchored at the December 2022 buffer zone around $9.60.
Looking at the daily chart below, it’s evident that Solana has bounced higher off the positive trendline. This price action follows this week’s breakout from the downtrend line marked by the decline from the July 2023 peak of $32.40.
Today, crypto trader Bluntz highlighted the potential for an inverse Head & Shoulder pattern. The pattern’s neckline is at $20.30, with the 50-day exponential moving average providing immediate supply zone support at $20.22.
Maintaining or surpassing these levels is crucial to the bulls’ short-term plans, a perspective supported by the daily Relative Strength Index (RSI) showing an upsloping trend above the neutral mark.
Conversely, there is a risk of Solana’s price breaking lower beyond the $18.80 demand zone. Increased sell-side liquidity in this area could push SOL to around $17.60. In such a scenario, bulls might rely on likely support near $14.50.