Solana was one of the top gainers last year. Since the start of the current year, the asset has failed to return to the levels it was at some weeks ago. Price action also showed the asset registering lower highs which raised concerns.
The past week was another setback in the bid for more price increases. During the first three days of the session, the coin gained more than 8%. Thursday saw the bullish trend change. It opened trading at $102 but retested the $90 support. It rebounded at $91 and closed at $94 which meant that it lost more than 7%. In the end of the week, the cryptocurrency lost almost 3%.
The current intraweek session started badly. The altcoin opened trading at $91 but faced massive retracement. As a result, it tested the $80 support but failed to break it. It rebounded and closed at $83 which meant it lost almost 8%. During the next session, it broke the said mark and dropped to a low of $78. In the end, it closed a little higher than its opening price.
Since that decline in value, solana has registered significant gains over the last two days. Friday was the most bullish as the coin opened trading at $86 and surged to a high of $93. Closing a little below its peak, it saw positive changes worth over 6%. The uptrend continued into the next day as the cryptocurrency gained more than 2%.
A few hours ago, the altcoin resumed its bid to flip $100 and surge higher. The indicators are pointing to this taking place within the next 48 hours.
MACD Impending Bullish Divergence
A closer look at the Moving Average Convergence Divergence shows that the metric is currently printing positive signals. The 12-day EMA is in contact with the 26-day EMA which will result in a divergence within the next 24 hours. This could also signal the continuation of the uptrend and in the asset breaking resistance.
The Relative Strength Index is also on the uptrend. Two days ago, the indicator was at 49 but surged to 52 at the time of writing.
Solana May Test $110
Following the readings from the indicators, it is easy to conclude that SOL may see more increases in the coming days. One of the key levels to watch is the $100 resistance. It is almost certain that the said mark will break within the next 48 hours. Once that happens, the next critical mark is the $110 barrier. Since the year’s beginning, the altcoin only surged above it once.
It is also important to note that several attempts at the highlighted level failed at $107. If this trend plays out again, the alt may not attain this mark this month. This is due to a strong indication that the asset is not seeing enough buying volume to achieve this. At peak conditions, SOL may retest $120.
On the other hand, a change in current market trend could send the cryptocurrency down to $93. If the downtrend continues, the altcoin could break the $90 support and retest $80 in the coming days.
