Solana Price Analysis: SOL soars 20% as cryptos commence recovery

Last Updated July 23rd 2021
3 Min Read
  • Solana embraced support at $18, allowing bulls to regain control.
    • A break above $30 is crucial to sustaining the uptrend.
    • The SuperTrend indicator has a vivid bearish picture likely to hinder the recovery.

    Solana bowed to the selling pressure in the market last week. The immense losses dominated the weekend trading session, leaving another bloodbath behind. SOL lost nearly 68% of its value from the all-time high of $58 before securing support at $18.

    On the brighter side, recovery has started, whereby Solana is trading at $28. As technicals strengthen, the price is expected to lift above $30 and start the next phase of the journey toward $40.

    Solana bulls back in control

    The short-term technical picture is flipping massively bullish. Therefore, it is likely that the ongoing recovery will stretch into the coming sessions. For instance, the Moving Average Convergence Divergence (MACD) indicator has a vivid bullish outlook.

    The call to buy came into the picture after Solana secured the support at $18 and later confirmed the breakout above $22. It is worth noting that the MACD line (blue) has crossed above the signal line, validating the uptrend. A final leap into the positive region would call more buyers into the market, perhaps trigger gains toward $40 and $50, respectively.

    SOL/USD four-hour chart

     SOL/USD 4-hour chart 052421

    According to the Relative Strength Index (RSI), a consolidation movement could come into play under $28. This follows a hurdle at 40, which curtails the action from the oversold region. Solana bulls must bring the price above $30; otherwise, overhead pressure may start to mount.

    Solana’s bearish outlook

    The SuperTrend Indicator and the Parabolic SAR on the same four-hour chart send contrary signals, implying that the downtrend is far from over. Both indicators are chart overlays following the asset’s trend. They work best in trending markets compared to ranging ones.

    For instance, the SuperTrend has sustained a bearish signal since Solana hit a snag at 58. The call to sell manifested by the line flipping over the price and turning red. If this picture remains the same, we can expect another dip in price.

    SOL/USD four-hour chart

     SOL/USD 4-hour chart 052421

    The Parabolic SAR is also bearish based on the position of the parabolas (dots). As long as the dots hold above the price, downward price action will prevail. It also means that higher support must be established to keep the bearish advances at bay and prevent losses from extending below $20.