Solana Analysis: SOL up by 200% From December Low as it Attempts $25

Solana

Solana price chart displays several new developments.  It is not hard to conclude that these moves are one of the most bullish it experienced over the last three months.

As a result, the altcoin is seeing a notable price increase. This is in sharp contrast to December’s price action. After FTX collapsed, the asset struggled for months. it dipped to its lowest in the last month of the year.

During this period, it dipped to a low of $8 after almost eight days of consistent downtrend. However, it recovered to $9.64 before the session came to an end. Nonetheless, the low marked it lowest it dropped since its introduction to the market.

In December, SOL opened at $14 after a more than 56% dip in November. It attempted the $15 barrier but failed as it peaked at $14.96. After the significant dump, it closed at $9.9, signifying a more than 29% drop in value in thirty days.

The next month was one of the most bullish periods for the asset. It kicked off at $10 and surged to a high of $26.7. However, it closed at $23.9 which represents a more than 140% increase during the 30-day period. The next two months were marked by significant decreases.

The current month is better than the previous as we noticed improvements in price. It started trading at $21 and peaked at $24.5. The current price tells that the asset is up by 200% from its low of $8.

Let’s see how indicators are reacting to the current price improvement and how it may affect prices in the coming days.

Solana is Bullish Across all Indicators

A look at the daily chart shows that several metrics are displaying bullish signals. The first to consider is the Moving Average Convergence Divergence.

A few days ago, we noticed a tightening gap between the 12-day and 26-day EMA. As a result, SOL had a bullish divergence afterwards. Over the last 48 hours, the 12-day EMA continued to surge and is showing no signs of retracing as buying pressure increases.

We observed the same movement on the Relative Strength Index. At the time of writing, RSI is gradually edging towards 70. This also impacted the Moving Average as we noticed other positive indications.

Both the 50-day and 200-day MA are converging and we may expect a Golden cross if current momentum remains the same.

With almost all indicators displaying positive trends on Solana, we may expect further price increases in the coming days.

Key Levels to Watch

Vital Support: $20, $17

Vital Resistance: $25, $27.5

The highlighted levels are key marks. The first on the list is the $25 resistance. Over the last thirty days, it tested the mark twice and failed to gain stability above it.

The first time was in early march when it peaked at $24 and retraced. The second is the most recent when it surged to a high of $24.5 and halted its advances. With the indicators still positive, we may expect another attempt at the barrier.

Over the last three months, we noticed several attempts at the $27.5 resistance. In February, the atlcoin traded very close to it but failed to flip it. The same happened in January.

A flip of $25 may guarantee a retest of this barrier. This may also mark the first in more than four months the surge above it.

With regards to support, the $20 barrier held out over the last twenty days with only one flip. We may expect it to hold. On the other hand. a flip may result in a retest of the $17 support.

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