Solana Price Analysis: SOL on the Verge of an Explosive Technical Breakout to $50
- Solana pulls out of a descending parallel channel as bulls nurture the uptrend above $30.
- SOL inches closer to the hurdle at $38, highlighted by the 50 SMA.
Solana's breakdown from the all-time high achieved last week at $58 carefully occurred within the confines of a descending parallel channel. Multiple support areas were shattered, but the channel's lower edge kept the downswing under control. With the support at $20, bulls took over, paving the way for the ongoing incredible recovery.
Solana eyes liftoff beyond $50
Solana is trading significantly above the descending parallel channel at the time of writing but precisely at $35. The confirmed break above $30 has encouraged more buyers to join the market. Besides, most crypto assets are championing recovery in the wake of last week's paralyzing bloodbath.
Marginally above the prevailing market value, Solana faces an imminent resistance, brought to light by the 50 Simple Moving Average (SMA) close to $38 on the four-hour chart. The bulls' primary goal would be to strike above this short-term barrier. In so doing, massive buy orders are expected to come into play, catapulting SOL into another phase above $40.
SOL/USD four-hour chart
Technical levels validated the recovery from support at $20 in the four-hour timeframe. With the Moving Average Convergence Divergence (MACD) recuperating toward the positive region, the bullish momentum gained traction. The prevailing price action has also been reinforced by the MACD line (blue) widening divergence above the signal line.
Similarly, the Relative Strength Index (RSI) adds weight to the growing buyer influence in the market. Its movement toward the overbought territory is a vivid indication of a stronger bullish front. Solana will continue with the price above $40 if the technical outlook remains unchanged.
Looking at the other side of the picture
The 12-chart reveals that the SuperTrend indicator has a bearish signal. This call to sell occurred following the resistance at the all-time high, followed by the massive breakdown to $20.
SOL/USD 12-hour chart
If a buy signal fails to sparkle in the coming sessions, overhead pressure will likely soar, hindering the upswing to $40. On the downside, support areas at $30, $26, and $20 may be tested before another significant recovery attempt.