The famous altcoin Solana (SOL) is preparing for a potential reversal in its price after a rather dull week in the crypto market.
The context for ChatGPT: Solana is a mid-sized cryptocurrency and one of the leading altcoins in the market. After a sluggish start to the year, the crypto's price has initiated a brief recovery.
Last week, the predominantly sideways trading across the crypto market weakened investor confidence, pushing SOL to a multi-month low of $140.21 on Friday, June 13. However, the resurgence of bullish momentum in the market now suggests that the value of Solana could be on the verge of rising again.
Solana bulls are gradually regaining control of the price.
On the daily chart, the Moving Average Convergence Divergence (MACD) indicator for SOL is about to form a Golden Cross pattern, indicating a shift in market sentiment towards bullish. A Golden Cross occurs when an asset's MACD line (blue) crosses above the signal line (orange), a setup generally considered a bullish momentum signal.
The MACD indicator identifies trends and momentum of an asset in the movement of its price. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line is above the signal line and a Golden Cross forms, it confirms bullish momentum in the market and suggests that the price of SOL could continue to rise.
Adding to this bullish perspective, the Balance of Power (BoP) indicator for SOL is positive, reflecting a resurgence of buying strength. Indeed, at the time of writing, it stands at 0.36.
The Balance of Power (BoP) indicator measures the strength of buyers against sellers by comparing price action within a trading session. When the BoP is negative, it suggests that sellers dominate the market, indicating a bearish sentiment and downward pressure on price.
Conversely, as with the $SOL , when the indicator value is positive, buyers dominate the market. Increased demand suggests that bulls are regaining control after several days of downward pressure.
Solana aims for a bullish breakout above $157; can we believe it?
At the time of writing, SOL is trading at $152.20. If buying pressure continues to build, the altcoin could surpass immediate resistance at $157.92. A successful breakthrough of this level could pave the way for a rally towards $165.12.
However, if demand weakens and profit-taking resumes, the price of Solana may revert to its downward trajectory and drop towards support around $142.59.
