Will Solana (SOL) Continue to Soar Following the Explosive Rally? Price Analysis
The previous week saw Solana’s (SOL) price appreciating by approximately 45%. The alternative token recorded this substantial revival following dips toward the December yearly lows of $8. Meanwhile, SOL lost 1.6% over the past 24 hours, indicating that the token was consolidating following an explosive surge phase.
Top alts recorded northbound price movements as BTC saw recoveries. The coin’s outlook also flashed increasing bullish momentum on the charts. Moreover, it has seen substantial accumulation while demand skyrocketed within the past week.
While publishing this analysis, SOL remains inside the overbought region, suggesting buyers dominated the marketplace. Most tokens encounter corrections following a rally, and SOL could be headed for such tendencies.
Continued consolidation will finally cause SOL to surrender its closest support barrier. As a result, the alt should trade beyond the $17 level for continued bullish bias in the lower term. Solana saw its market cap increasing within the last 24 hours, meaning bulls controlled the space as buyers outshined sellers during this writing.
SOL Price Outlook – 1d Chart
SOL exchanged hands at around $16.45 during this writing. Moving beyond the $8 value area saw the alternative coin breaching substantial resistance zones. The $14 mark represented the most substantial resistance level for SOL.
Further, $17 remains vital for the SOL price to extend its upward actions. While the alt recorded double digits’ actions and consolidated beneath $17, the bull may lose vigor soon. Price corrections may trigger dips to 415.60 before exploring $14. Meanwhile, surrendering the $14 level would mean bears’ emergence in the marketplace. The alt explored green during the late session, confirming bullishness.
Solana had yet to hit higher levels on the Relative Strength Index for the last several months. Meanwhile, the upsurge marked multi-month highs on the RSI. In addition, the indicator swayed beyond the 80 regions, suggesting buyers surpassed sellers within the space.
Considering increased demand, SOL hovered beyond the 20-SMA (Simple Moving Average). That showed buyers controlling the price action. Furthermore, Solana swayed beyond the 50 Simple Moving Average, reflecting that Solana may see corrections in the upcoming sessions.
SOL sided with different technical indicators, authorizing increased demand. Meanwhile, the MACD (Moving Average Convergence Divergence) displays reversals and price momentum. As a result, the MACD remained green while flashing buy signs, expecting possible price surges before retracing.
Meantime, the Bollinger Bands (BBs) highlight fluctuations and price volatility. The bands have seen a significant expansion, showing the probability of massive price volatility during the coming trading session.
Solana fans should watch broad market developments. Bulls try to control the overall space following the latest price upticks. BTC extends its move beyond the $17K level, changing hands at $17,462.36 during this publication. Bitcoin gained 1.48% over the last 24hrs (Coinmarketcap).