After a brief period of decline, leading altcoin #Solana (SOL) has staged a strong recovery, rising nearly 10 percent over the past few hours. This rise has sparked optimism among investors and led to an increase in bullish sentiment for the altcoin in the cryptocurrency market.
Unpredictability in Altcoin Continues
Despite recent gains, Solana's price remains unpredictable as it remains hovering near a key support level. Over the past few weeks, the altcoin's market cap has lost over $22 billion, reflecting the high volatility in its price. However, the recent rise of 9.39 percent and the 122.26 percent increase in trading volume in the last 24 hours indicate a potential shift in market sentiment. According to data provided by CoinMarketCap, Solana is down 19.76 percent in the last 30 days.
On the other hand, the recent price action has led to the formation of an inverted cup handle formation on Solana's chart. This pattern typically signals a bearish trend and potential problems for the altcoin. Despite this, the short-term rise provided some relief to investors.
Technical Indicators for Solana
When technical indicators are examined, it can be seen that the Simple Moving Average (SMA) is approaching a positive intersection on the daily chart, which may indicate that price activity for Solana will increase. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a decline in the red histogram, indicating stronger buying pressure compared to selling pressure. This potential bullish divergence suggests that the altcoin's price may continue to rise in the near future.
If the overall cryptocurrency market rally continues, Solana's SOL can be expected to gain further momentum and test the resistance level at $155. A break above this level could push the price towards the upper resistance at $181.50.
In an opposite scenario, if the downtrend continues, Solana may retest the important support level at $127. Failure to maintain this support may cause the altcoin to drop to $100 in the coming weeks.
