The price of Solana is forming a V-shaped recovery on the weekly chart, suggesting that it could soon reach $295. However, this recovery pattern has not yet matured, as SOL faces a strong resistance zone between $179 and $203.
If the price of SOL surpasses this resistance level, the rally could push it up to $295. Reaching this point would establish a new all-time high for the altcoin. This bullish thesis is supported by a recent analysis from CoinGaoe citing an analyst's forecast of a price rally for Solana up to $200.
A V-shaped recovery pattern usually indicates that the price is recording a reversal after buyers took advantage of the drop in late April. However, after reaching this resistance zone, buying pressure diminished, hence the earlier observed rejection.
The decrease in buying interest in this resistance zone is evidenced by the RSI, which is below 50. This drop below 50 suggests a bearish momentum, as traders are indecisive in this resistance zone.
However, the AO histogram bars show a contrary view, as they turn green despite being in the negative zone. This bullish divergence will be valid once the AO crosses above the zero line again.
However, after a Solana whale moved $441 million in SOL to exchanges, the risk of a massive sell-off increased, making a price drop more likely to occur before the next bullish phase towards the target of the V-shaped pattern.
$SOL
If the price of SOL surpasses this resistance level, the rally could push it up to $295. Reaching this point would establish a new all-time high for the altcoin. This bullish thesis is supported by a recent analysis from CoinGaoe citing an analyst's forecast of a price rally for Solana up to $200.
A V-shaped recovery pattern usually indicates that the price is recording a reversal after buyers took advantage of the drop in late April. However, after reaching this resistance zone, buying pressure diminished, hence the earlier observed rejection.
The decrease in buying interest in this resistance zone is evidenced by the RSI, which is below 50. This drop below 50 suggests a bearish momentum, as traders are indecisive in this resistance zone.
However, the AO histogram bars show a contrary view, as they turn green despite being in the negative zone. This bullish divergence will be valid once the AO crosses above the zero line again.
However, after a Solana whale moved $441 million in SOL to exchanges, the risk of a massive sell-off increased, making a price drop more likely to occur before the next bullish phase towards the target of the V-shaped pattern.
$SOL
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
SOL
149.99
-2.15%
