Solana Price Analysis: SOL Rallies Past $40 Unbothered by Declines Across the Cryptocurrency Market
- Solana gains over 10% in 24 hours to trade above $40.
- A break above $44 is required to bolster SOL back to $60.
- A sell signal from the SuperTrend indicator may invalidate the uptrend in the short term.
Solana has persistently recovered from the losses incurred in May, where the token hit lows under $20 before securing support at $19.50. The uptrend has been gradual but consistent, with bulls hitting new milestones.
Following the widespread declines this week, SOL corrected from a barrier at $44 to the support at $33, reinforced by the 100 Simple Moving Average (SMA). An immediate recovery came into the picture pulling Solana above $40.
Solana uptrend steadies toward $60
Solana is trading at $42 at the time of writing amid a growing bullish momentum. The primary goal is to hit the ground above $44. Note that a four-hour close above this level will validate the bullish outlook as speculation for an upswing to $60.
It is worth mentioning that the Moving Average Convergence Divergence (MACD) indicator is about to flip massively bullish. This indicator tracks the momentum of an asset and measures its momentum.
A buy signal comes into the picture when the MACD line (blue) strikes above the signal line. Using other technical indicators and chart patterns, traders can confirm this call to buy. Moreover, the MACD bouncing off the mean line (0.00) in itself supports the bullish narrative.
SOL/USD four-hour chart
A comprehensive look at the chart brings to light a potential golden cross pattern. This technical chart pattern appears when a short-term moving average crossed above its long-term moving average. For instance, the 50 SMA continues to close the gap to the 200 SMA. The golden cross pattern gives an insight into the possibility of a long-term bullish trend.
Looking at the other side of the picture
The same four-hour chart illustrates a bearish signal that recently emerged from the SuperTrend indicator. This is a chart overlay indicator following the trend of an asset. It considers the volatility of the assets and gives either buy or sell signals.
SOL/USD four-hour chart
A sell signal appears when the indicator line moves above the price while the colour changes from green to red. It infers that overhead pressure is apparent, and declines could resume soon. When correctly used in trading markets, the SuperTrend indicator identifies positions to short or long an asset.