Solana Price Forecast: SOL Closes In On Key Recovery Milestone But Resistance At $28 Must Give Way

Last Updated July 23rd 2021
2 Min Read
  • Solana price restarts uptrend after diving back to $22 earlier this week.
    • SOL's uptrend will gain more traction if the seller's congestion zone at $28 moves out of the way.

    Solana bulls are giving bears a run for their money after bouncing off support at $22. This was the first formidable support since the rejection at $38 on July 7. As the recovery gains ground, investors anticipate another roll up to $38, if not $40, in the coming sessions.

    SOL is teetering at $26 at the time of writing while grinding closer to $28. A break above the immediate hurdle is expected to catapult Solana above $30, a barrier reinforced by the 50 Simple Moving Average (SMA) on the 12-hour chart. As bulls take down subsequent hurdles, the odds for a sustained uptrend to $38 significantly increase.

    What Could Bolster Solana Price To $38?

    The bullish narrative is generally supported in the short term, with indicators like the Relative Strength Index (RSI) validating the bull's presence. Near oversold conditions earlier this week gave buyers a boost as investors rushed to buy the dip. Solana's confirmed break beyond $28 and the 50 SMA will accentuate the bulls' grip on the price.

    SOL/USD 12-hour chart 

    The odds for a breakout toward $30 increased after the Moving Average Convergence Divergence (MACD) presented a buy signal on the four-hour chart. Note that the MACD tracks Solana's trend and calculates its volatility. In so doing, the oscillating moving averages send bearish or bullish signals.

    For instance, the call to buy Solana appeared as the 12-day Exponential Moving Average (EMA) crossed above the 26-day EMA. The widening divergence between the signal line and the MACD line adds credence to the bullish outlook.

    Moreover, Solana will break out further if the MACD crosses the midline into the positive region. Therefore, it is imperative to say that SOL's least resistance path will stay upward in the coming sessions.

    SOL/USD four-hour chart

     SOL/USD four-hour chart

    What Could Invalidate Solana's Uptrend?

    The TD Sequential indicator has presented a sell signal on the four-hour chart. The call to sell SOL manifested in a green nine candlestick. Its appearance implies that the uptrend will likely lose traction, giving way for sellers to take control. A daily close under $28 could also see an overhead pressure surge. On the downside, Solana may retreat to seek support at $25 and $22, respectively.

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