Solana Price Forecast: SOL On The Brink Of Massive Breakout To $50

Last Updated August 10th 2021
2 Min Read
  • Solana price battles the seller congestion at $40 as $50 beckons.
  • The 100-day SMA protects SOL's immediate downside.
  • Multiple buy signals cement the bulls' influence in the market.

Solana is among the altcoins that are giving Bitcoin a run for its money. Following the robust support at $20, the smart contract token started the recovery journey to close the gap to $40. Several hurdles delay the uptrend, but bulls remain steadfast in their mission for gains aiming for $50.

Meanwhile, seller congestion at $40 has challenged bulls, making it a daunting task to explore the levels heading to $50. Despite the delay, the path with the least resistance remains north, especially when the short-term technical picture is considered.

Solana Price Prepares To Takeoff To $50

A break above $40 will enhance the bulls' influence in the market and start the subsequent recovery phase to $50. The bullish narrative has been reinforced by the Moving Average Convergence Divergence (MACD) indicator. With the MACD above the mean line, investor interest is expected to remain high, not to mention the sustained buy signal since July 22.

SOL/USD Daily Chart

 SOL/USD Daily Chart 081021

The Relative Strength Index (RSI) affirms the bulls' grip on the price as it closes the gap to the overbought. This technical index follows the trend of an asset and measures the strength of the bulls and the bears. As the RSI lifts into the overbought area (above 70), buying pressure soars. It also shows that the slightest resistance path is upward, and buyers will likely remain dominant in coming sessions.

It is essential to note that the SuperTrend indicator, which follows the trend of an asset just like a moving average, has recently flipped bullish by sending a buy signal on the detailed daily chart. The SuperTrend utilizes the average true range (ATR) in its calculations and helps traders foresee future trends.

As the price lifted from $20, the odds for a bull breakout soared. A daily close of the SuperTrend under Solana price evoked a buy signal. As long as this technical tool remains below the price and with green color, bulls will keep dominating the market.

SOL/USD Daily Chart

 SOL/USD Daily Chart 081021

Looking At The Other Side Of The Fence

Another daily close under $40 may see overhead pressure surge amid exhaustion in the bullish camp. Realized that a break above this critical level would motivate more buyers to join the trend. Solana may retreat to test the support at the 100-day SMA without a breakout and perhaps revisit the buyer congestion at $30.

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