The Solana price has started to reverse itself over the last week. Solana has witnessed close to 10 months of downtrend now. It is still determined if SOL can hold onto the bulls over the subsequent trading sessions. The technical outlook for Solana pointed towards positive price action on the daily chart.
Buying strength returned to the market. The demand for the altcoin also appreciated, along with its accumulation. Now that the bulls have pushed the coin above the $20 price mark, the coin has witnessed positive price momentum.
The critical price range for the altcoin stood between immediate support and a stiff resistance line. For Solana to witness a price reversal, it is imperative that the coin trades above its long-coming price resistance mark.
The market capitalization of SOL noted a slight recovery, which marked an increase in demand. A consistent pullback from the vital resistance mark will tire the bulls out eventually, causing the altcoin to fall on its chart again. Risk-averse traders should watch for the price to touch the lower end of the band. This would mark an entry point for traders.
Solana Price Analysis: One-Day Chart
SOL was trading at $22.88 at the time of writing. The altcoin had broken through the $20 price barrier, increasing it even further.
Solana has secured the $21 mark as the local support level for the altcoin. The $20 to $26 level proves crucial as in the past few months price has been unable to break above the $26 level.
The price mentioned above the floor is vital for the coin to trade above it. A fall from the $21 level will eventually drag the altcoin to $20 and then to $16.
The amount of Solana traded in the last session increased, indicating a rise in buyers. The overhead resistance mark for SOL was $24. A breach of that level can help SOL rise to $26 and break past it.
Technical Analysis
As the altcoin breached the $20 mark, there was a positive shift in demand. The Relative Strength Index shot past the half-line into the positive zone, indicating buyers had taken over the market.
If demand remains consistent, SOL might target its above-resistance level over subsequent trading sessions. Accordingly, SOL was above the 20-Simple Moving Average line, which also meant that buyers were driving the price momentum in the market.
The Moving Average Convergence Divergence displays price momentum and reversals. The indicator turned positive with green bars related to a buy signal on the chart. Other technical indicators have also indicated bullishness.
Bollinger Bands read price volatility, therefore measuring fluctuation. As the bands drew closer, the price would trade within the stated range, meaning the coin would not witness sharp fluctuations over the subsequent trading sessions.