Solana (SOL) recently experienced a price pullback after failing to break above the crucial support level of $118. This bounce indicates strong buying interest at this support level, preventing further declines and stabilizing the price.
The $118 mark has proven to be a resilient support, with market participants closely monitoring Solana’s price action for signs of recovery or further bearish pressure. As Solana navigates this key level, traders and investors are analyzing technical indicators and market sentiment to predict the cryptocurrency’s next moves.
This article aims to analyze the recent price movement of SOL as it rebounds after failing to break the critical support level of $118. Additionally, it will examine technical indicators, market sentiment, and broader cryptocurrency market trends to provide a comprehensive understanding of the current market dynamics and Solana’s future prospects.
At the time of writing, SOL’s price was up over 9%, trading at around $137, with a market valuation of over $63 billion and a trading volume of over $3 billion. Over the last 24 hours, SOL’s market cap has increased by 8.93%, while the trading volume has decreased by -23.83%.
Solana Price Reactions After Being Rejected at $118
SOL Price on the 4-hour chart after the rejection at the $118 support level, it is trying to break above the 100-day simple moving average (SMA) and the $140 resistance level.
Additionally, the Moving Average Convergence Divergence (MACD) on the 4-hour chart signals a bullish move for SOL, as the MACD histograms are actively moving above the zero line with good momentum. The indicator’s signal line has also made a crossover above the MACD line and they are moving towards the zero line.
Although the SOL price on the 1-day chart is bearish and trading below the 10-day moving average, it can be observed that the price is moving upwards with good momentum after failing to pause below the $118 support level.
Finally, the 1-day MACD indicator also confirms the upward movement in Solana price as the MACD histograms are moving above the zero line. The signal line and the MACD line also seem to have crossed the MACD zero line and are heading towards it.
SOL: Will it fly or stall?
Currently, Solana is attempting an upward evolution towards the Resistance level at $140. If the price of SOL exceeds this level, it will continue to rise to test the Resistance level at $160 and could likely move on to test the $188 level and other higher levels.
However, if the price reaches the $140 resistance and fails to break above it as expected, it will start to decline again towards the $118 support level. If it breaks below this support level, it will continue to decline to test the $99 support level. Moreover, Solana could see a further decline to test the $79 support level on the chart if it breaks below the $99 support level.
Featured image from Adobe Stock, chart from Tradingview.com
