The popular altcoin #سولانا is preparing for a potential price reversal after a quiet week in the cryptocurrency market.
Last week's sideways trading in the broader market weakened investor confidence, resulting in a drop in the price of $SOL .
to its lowest level in several months at $140.21 on Friday. However, renewed bullish momentum in the market suggests that the price may be poised for a rebound.
Solana bulls are gradually regaining control.
On the daily chart, the Moving Average Convergence Divergence (MACD) for $SOL is about to form a golden cross, indicating a shift in market sentiment towards the bullish direction. The golden cross occurs when the asset's MACD line (blue) crosses above the signal line (orange), which is widely viewed as a bullish momentum signal.
SOL MACD.
The MACD indicator identifies the trends and momentum of assets in price movement. It helps traders discover potential buy or sell signals through the intersections between the MACD line and the signal line.
When the MACD line is above the signal line and a golden cross is formed, it confirms bullish momentum in the market and suggests that the price of $SOL may continue to rise.
In addition to this bullish outlook, the Balance of Power (BoP) for #SOL is positive, reflecting a resurgence of buying strength. At the time of publication, this stands at 0.36.
SOL BoP.
The BOP indicator measures buyers' strength against sellers by comparing price movement within the trading session. When BOP is negative, it indicates that sellers dominate the market, suggesting bearish sentiment and price pressure downward.
Conversely, as with SOL, when the indicator value is positive, buyers dominate the market. Increasing demand indicates that bulls are regaining control after several days of downward pressure.
Solana targets a breakout above $157 - will the bulls achieve it?
At the time of publication, SOL is trading at $152.20. If buying pressure continues to build, the altcoin may break through immediate resistance at $157.92. A successful breach of this level could pave the way for a rise towards $165.12.
SOL price analysis.
However, if demand weakens and profit-taking resumes, Solana's price risks resuming its downward path, dropping to a support level around $142.59.