Following a recent pullback from its 2023 highs of $78, Solana has found stability at the $65 mark. This decline was observed in tandem with corrections in major cryptocurrencies like Bitcoin and Ethereum, contributing to a 2.1% dip in the overall market cap to $1.61 trillion.
However, amidst this adjustment, technical indicators are hinting at potential upward momentum for SOL. Notably, Solana’s price is rebounding from the $65 congestion zone highlighted on the four-hour chart, suggesting a possible revival of the uptrend if it maintains above this level. Traders are advised to monitor a break above the upper ascending trendline, signaling a resumption of the upward trajectory.
Moving Average Convergence Divergence (MACD)
While the Moving Average Convergence Divergence (MACD) persists below the neutral range, there’s significant potential for a buy signal. If a bullish crossover occurs, indicating the MACD line surpassing the signal line, traders and investors could view the current downturn as a favorable moment for purchasing.
Relative Strength Index (RSI)
Moreover, indicators like the Relative Strength Index (RSI), while not yet oversold, show signs of a rebound from lows at 36. This drop seems to have attracted more holders to accumulate SOL in anticipation of a larger breakout. Speculations among investors are rife, targeting levels not just around $80 but potentially surpassing $100 before December concludes.
Additionally, with the upcoming Federal Reserve meeting on interest rates and easing inflation in November, the crypto market, including Solana, appears to be taking a temporary pause. Despite this, investor sentiment remains bullish, underpinned by a broader trend of disinflation.