With the surge in bullish sentiments across the cryptocurrency market, several top altcoins have witnessed a substantial increase in their portfolio value. Notably, Solana (SOL) has exhibited notable growth, with a remarkable 7.25% increase in the past day, breaking through a crucial resistance level.
The Solana coin price maintained a narrow range between $90 and $100 briefly, signaling a period of weak price action. As market volatility intensified, the bulls lost momentum, resulting in a breakdown on the chart.
Despite the setback, the bulls managed to keep the SOL price above the support level of $80.19, leading to a subsequent rebound in value. The price surged by approximately 35% after facing rejection at $108.18, entering a consolidated range between $108.18 (resistance) and Cross EMA 200-day (support).
Recent attempts by the bulls to break out from the critical resistance level faced opposition from the bears, resulting in a pullback. However, the EMA 50-day acted as a support, enabling the price to bounce back with a gain of over 7.5% in the past 24 hours. This indicates a significant increase in buying sentiment in the cryptocurrency industry.
Will Solana Price Drop Again?
The MACD technical indicator reveals a consistent rise in the histogram, indicating heightened buying and selling pressure in the market. Bullish convergence in the averages suggests an impending significant price action.
If the market continues to strengthen and propels the Solana price above its resistance level of $117, the coin is poised to test its upper resistance at $125 by the weekend. Sustaining this level sets the stage for SOL to attempt a further push towards the $135 resistance in the coming weeks.
Conversely, if the bears overpower the bulls, the SOL price may lose momentum, testing its support level at $108.18. Continued bear dominance could lead to a further decline, preparing to test the lower support level of $100 this month.