July 17, 2024
1 Solar System Way, Planet Earth, USA

Solana recovers after failing to break $118 support: time to buy?

Solarium (SOL) recently experienced a price pullback after failing to break below the crucial support level of $118. This rally indicates strong buying interest at this support level, preventing further declines and stabilizing the price.

The $118 level has proven to be a resilient support, and market participants are closely watching Solana’s price action for signs of recovery or renewed bearish pressure. As Solana navigates this key level, traders and investors are analyzing technical indicators and market sentiment to predict the cryptocurrency’s next moves.

This article aims to analyze the recent price action of SOL as it recovers after failing to break below the critical support level of $118. Additionally, it will examine technical indicators, market sentiment, and broader cryptocurrency market trends to provide a comprehensive understanding of the current Solana market dynamics and future prospects.

At the time of writing, SOL price had risen by over 9% and was trading at around $137, with a market valuation of over $63 billion and a trading volume of over $3 billion. Over the past 24 hours, SOL’s market cap has increased by 8.93%, while the trading volume has decreased by -23.83%.

Solana Price Reactions After Rejection at $118

Price of SOL On the 4-hour chart, after the rejection at the support level of $118, it is attempting to move above the 100-day simple moving average (SMA) and the resistance level of $140.

Source: SOLUSDT on Tradingview.com

Moreover, the moving average convergence divergence (MACD) on the 4-hour chart indicates bullish movement for SOL as the MACD histograms are actively trending above the zero line with good momentum. The signal line of the indicator has also made a crossover above the MACD line and is moving towards the zero line.

Although SOL price on the 1-day chart is bearish and trading below the 10-day Simple Moving Average (SMA), it can be seen that the price is moving upwards with good momentum after failing to break below the support level of $118.

Source: SOLUSDT on Tradingview.com

Lastly, the 1-day MACD indicator also confirms the upward movement of Solana price as the MACD histograms are trending above the zero line. It is observed that both the signal line and the MACD line have also crossed over and are heading towards the MACD zero line.

SUN: Will it fly or stop?

Solana is currently attempting an upward move towards the Resistance level at $140If SOL price breaks through this level, it will continue to rise to test the Resistance level at $160 and will likely move forward to test the $188 level and other higher levels.

However, if the price hits the $140 resistance and fails to break above it as predicted, it will start falling again towards the $118 support level. If it breaks below this support level, it will continue to move down to test the $99 support level. Moreover, Solana may witness a further drop to test the $79 support level on the chart if it breaks below the $99 support level.

SOL is trading at $137 on the 1-day chart | Source: SOLUSDT on Tradingview.com

Featured image from Adobe Stock, chart from Tradingview.com

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