Coinposters
Solana (SOL) again broke above a crucial resistance level that had hampered its recovery attempts during the November 2021-March 2022 price correction, creating prospects for fresh upside in April.
To summarize, when SOL’s price tested its multi-month downward sloping trendline in recent history, it had significant pullbacks.
For example, the SOL/USD pair fell by 60% two months after retreating from the mentioned resistance level in December 2021. Similarly, it had dropped by more than 40% in a similar retracement move in November 2021, prompted by a selloff around the trendline.
However, after breaking above the resistance trendline on March 30, Solana turned it as support (S/R flip), followed by an increase in trading volume that demonstrated traders’ confidence in the breakout move. As a result, SOL’s price increased by 25% to $135, bringing the psychological barrier level of $150 within grasp.
SOL’s breakout move above its falling trendline resistance coincided with a bullish crossover of its two important moving averages: the 20-day exponential moving average (20-day EMA; the green wave) and the 50-day EMA (the red wave).
The golden cross is a technical signal that happens when an asset’s short-term moving average exceeds its long-term moving average. This crossing is seen as a buy signal by traditional experts.
In addition to other fundamental and technical events, the 20-50 EMA crossover in August 2020 may have aided in propelling SOL’s price up by more than 650 percent to over $267. As a result, the golden cross increases SOL’s chances of continuing its rise and breaking over the falling trendline resistance.
If a technical fractal noted by Delphi Digital is to be believed, the upside chances improve much more. The crypto research organization found a link between the price of SOL and the combination of its two technical indicators: the S/R flip and relative strength index (RSI) divergence.
When applying Fibonacci retracement levels formed between the swing high of $261 and the swing low of $77.50, SOL/USD might continue its rise, with an interim upside target of $147-$150.
A decline around or before testing the $147-$150 price level, on the other hand, may result in SOL retesting the $120 as intermediate support, with a probable drop toward the 20- and 50-day EMAs.
Price Analysis
25 Jan 2023
Price Analysis
23 Jan 2023
Price Analysis
22 Jan 2023
Price Analysis
21 Jan 2023
Price Analysis
19 Jan 2023
Price Analysis
18 Jan 2023
© 2015-2022 Coinposters. All rights reserved!