Solana Price Forecast: SOL Holds at Threshold, Preparing for Takeoff to $40

Last Updated July 23rd 2021
2 Min Read
  • Solana’s reflex recovery could erase the losses made in the last week.
    • Higher support, perhaps at $30, is required to affirm the uptrend to $40.
    • Short-term technical indicators have reinforced SOL’s bullish outlook on the four-hour chart.

    Solana and Uniswap are leading cryptocurrencies in recovery during the European session on Wednesday. The downswing this week dented investor holdings across the board. However, SOL holders are coming to the water surface stronger and ready to take down the hurdles at $34.5 and $40, respectively.

    Solana’s recent drop from highs around $44 stopped at $20, a buyer congestion zone that halted the selloff in May. An immediate rebound from the support triggered more buy orders as investors increased their positions. An upsurge in the tailwind forced catapulted SOL to $30, shifting the bulls’ attention toward $40. With improving short-term technical levels, Solana’s uptrend seems intact.

    Solana uplift to $40 could be a matter of time

    Solana is building momentum after jumping above $30. Technical levels align for the ultimate upswing to $40, starting with the Relative Strength Index (RSI), which follows the trend of an asset and ascertains its strength. Note that with the RSI moving toward the overbought, the bulls’ strength cannot be underrated.

    The Moving Average Convergence Divergence (MACD) indicator also adds credibility to the ongoing price action. As the MACD moves toward the zero line, a bullish signal appears. It is then accentuated by the MACD line (blue) crossing above the signal line, which is a call to buy into Solana amid speculation for gains above $40.

    SOL/USD four-hour chart

     SOL/USD 4-hour chart 062321

    The TD Sequential indicator also presented a buy signal after the support at $20. This call to buy manifested on the four-hour chart in a red nine candlestick. The buy signal was validated after the ninth and eighth candles closed below the lows of the sixth and seventh candles, as illustrated on the chart.

    SOL/USD four-hour chart

     SOL/USD 4-hour chart 2 062321

    Looking at the other side of the picture

    The support at $30 must be held in the near term to allow bulls time to plan the attack mission on $40. Otherwise, if Solana closes the day below this level, overhead pressure will soar, triggering another freefall toward $20.

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