The Solana price has turned bullish on the daily chart. Over the last 24 hours, the altcoin has risen by 1%. SOL has logged close to a 6% gain in the last week. Although the coin depicts positive price action on the daily time frame, the bulls might fade on the weekly time frame if demand for SOL doesn’t appreciate.
The technical outlook of the Solana price indicated accumulation, which meant that demand was returning in the market. The asset’s price has crossed the $14 mark, which has acted as a stiff resistance for the coin.
Despite that, SOL has not secured the $14 mark as a solid support line. If buyers start to wane, SOL could fall to its next support line. SOL trades at a 94% discount to its all-time high set in 2021. There are two important price resistances that SOL has to break through to target a move to $15. A move below $14 will land the altcoin near the $13.60 support line.
Solana Price Analysis: One-Day Chart
SOL was exchanging hands at $14 on the one-day chart. The bulls could finally push through the $14 resistance mark; however, demand for the coin remains wobbly despite an uptick. Bulls must ensure that the Solana price remains above the $14 mark to surpass the two vital trading levels.
Immediate resistance was at $14.20, above which SOL would face resistance at $14.90 before revisiting $15. The nearest support line for Solana was at $13.60; however, a fall to $13.60 could further drag the asset price to $12. The amount of SOL traded in the last session was green, which showed short-term bullishness.
Technical Analysis
SOL had broken above its descending resistance line, and the coin has been attempting to move north ever since that. In the shorter time frame, Solana formed a bullish divergence. The Relative Strength Index was past the 40-mark, which meant that buyers were slowly gaining strength and that SOL was registering demand.
A bullish divergence is related to positive price action. Similarly, the price of Solana was above the 20-Simple Moving Average line; this sign means that the buyers were driving the price momentum in the market.
Of the increase in buyers, the altcoin registered a buy signal on the one-day chart. The Moving Average Convergence Divergence underwent a bullish crossover and formed green histograms, which were a buy signal for SOL. Buyers could profit in a shorter time frame.
The Chaikin Money Flow indicates the capital inflows and outflows; although CMF was above the half-line, there was a significant decline in capital inflows at press time. For Solana to continue to make gains, the asset has to trade above the $14.20 price mark.
Credit: Source link
