- Solana hit a new all-time high of $37 as bulls look forward to $40.
- The short-term technical picture remains bullish based on the MACD.
- Higher supported is required to sustain the uptrend and avert potential losses back to $30.
Solana has been on an upward roll since the beginning of April. Earlier this week, the hiccup in the market caused a minor dent in progress, with the price briefly diving to $21. However, a recovery ensued, sending Solana above $3. The bullish momentum continued, triggering tremendous buy orders as investors speculated upswing to record highs.
Solana Battles to Secure Higher Support
Solana dances at $35 following a minor retreat from highs of $37. Bulls are concerned with securing higher support, which will give them ample time to stage the mission for another upswing past $40.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shines a light on the ongoing uptrend. This indicator tracks the trend of an asset and measures its momentum. A break above the mean line (0.00) is a bullish signal.
Moreover, when the MACD line (blue) crosses above the signal line, investors are advised to buy in or increase their stakes. It is essential to realize that moving into the negative region and the MACD line crossing beneath the signal line is usually a formidable bearish signal.
SOL/USD four-hour chart
Simultaneously, the Relative Strength Index (RSI) on the four-hour chart hints at the bullish momentum lasting longer. As the RSI closes the gap to the overbought region, Solana's uptrend strengthens.
It is worth noting that a break past $40 would be a significant milestone for the cryptocurrency with a likelihood of triggering massive buy orders. If the fear of missing out (FOMO) grips the market, an aggressive tailwind will be created, pushing Solana to higher price levels.
The SuperTrend indicator validates the uptrend to record highs after recently flashing a buy signal. This call to buy manifested in the indicator turning green and moving under the price. If the technical picture remains intact, Solana is bound to continue with the run-up to highs past $40.
SOL/USD four-hour chart
Solana Bearish Outlook
It is worth noting that if higher support is not secured, preferably above $35, overhead pressure may start to mount. Solana must also step above the record high of $37 to pave the way for gains going toward $40. Otherwise, a correction may come into play, extending the bearish leg to seek refuge at $30 and $27, respectively.