Solana's (SOL) 50-day Simple Moving Average (SMA) has started to show an uptrend, positioning itself to cross above the 200-day average soon. This possible crossover is a bullish signal known as a “Golden Cross” or “Cross of Gold”, and often anticipates a price increase.
If the trend forms as expected, it could push Solana’s price above $200 — a level it hasn’t reached in a few months. This analysis explores the factors that could make this possible in the near term.
Solana is ready for a rally
The daily chart of the SOL/USD pair shows that the 50-day SMA (blue line) is about to cross above the 200-day average (yellow line).
Solana 50/200-day SMA. Source: TradingView
When this occurs, the asset’s recent price momentum (over the past 50 days) is accelerating faster than its long-term trend (over the past 200 days). This crossover is referred to as a Golden Cross. This movement confirms a transition from a downtrend to an uptrend and suggests potential price appreciation.
In this regard, the successful formation of this signal depends on sustained buying pressure around SOL. The altcoin’s positive Chaikin Money Flow (CMF) suggests this could materialize in the coming days. Currently, Solana’s native token CMF is trending up at 0.24.
Furthermore, the positive reading of the Bull Bear Power (BBP) indicator supports this bullish outlook. Currently, this indicator is at 16.57.
Solana CMF and BBP. Source: TradingView
BBP measures the balance between buying and selling pressure in the market. When it is positive, it shows that buyers are more active than sellers.
Read more: How to Buy Solana (SOL) and Everything You Need to Know
Price prediction
At press time, Solana is trading at $176.46, just above the key support level of $171.91. If this level continues to serve as support, it could pave the way for the cryptocurrency’s price to move towards the resistance at $188.74.
A successful break above this level could propel SOL to $210.18, a level not reached since March 18.
Solana Price Analysis. Source: TradingView
On the other hand, if the $171.91 support fails to hold, Solana’s price could drop to $160.09. If demand weakens at this level, the cryptocurrency’s value could decline further to $148.27.
The article Solana (SOL) Nears Golden Cross: What to Expect Now? appeared first on BeInCrypto.
