A technical look at Solana's performance on the short time frame (30 minutes), which shows a positive rebound after a downward wave, but faces conflicting indicators that require careful monitoring.
๐ The situation at a glance
Current situation: Strong upward rebound from a recent price low. ๐
Key indicators: Increasing positive momentum (MACD) matched by the strength indicators reaching overbought areas (RSI & KDJ). โ ๏ธ
Potential scenario: A struggle between continued upward momentum and the possibility of a correction for profit-taking in the short term. ๐ฏ
๐ก Detailed technical analysis (30-minute frame)
Price Action: After reaching a peak at 159.99
The price experienced a sharp decline to establish a clear bottom at the level of 144.85.
From this bottom, the price started a strong rebound forming what resembles a V-Shape pattern and is currently trading around $148.04.
MACD indicator:
The indicator shows a clear positive crossover, as the DIF line crosses above the DEA line. The histogram (bars) is green and increasing in height, emphasizing the establishment of short-term buying momentum and considered a positive reversal signal.
Relative Strength Index (RSI):
The indicator stands at 68.27, which is a high level and very close to the overbought area that usually starts at 70. This warns that the current rise may be overstated in the short term and may be followed by a period of cooling or correction.
KDJ (Stochastic) Indicator:
This indicator confirms the RSI signal, as its values are very high (K=90, D=84), clearly placing it in the overbought area. This is a warning signal that buyers may be starting to lose strength.
๐ Potential scenarios and levels to watch
โ Positive scenario (Bullish Scenario):
If the upward momentum (MACD) can overcome the overbought signals, the next target will be breaking through the upcoming resistances:
First target: Testing the highest price in the last 24 hours at $154.04.
Second target: If the strength continues, the price may head to test the previous peak around 159.99.
โ ๏ธ Corrective scenario (Corrective Scenario):
Due to overbought indicators (RSI & KDJ), a correction is a very likely possibility.
First support: Any pullback will find the first support at the recent low and the psychological support level of 144.85.
Negative signal: A break below this support will negate the current positive outlook and may open the door for further declines.
๐ฅ Summary of the analysis
Solana (SOL) is in an interesting technical position, as there is a struggle between the positive upward momentum (MACD) and the overbought indicators (RSI & KDJ). The price is currently in a critical area that may determine its next direction.
For the bullish trader: Entry requires caution and waiting for a breakout above resistances or a correction towards support areas to enter at better prices.
For the cautious trader: Current levels may present an opportunity for profit-taking while waiting for clearer signals.
Share your opinion: Do you expect SOL to continue its rise towards $160 or is a correction coming? ๐
๐ Important tips and risk management
๐น Do not ignore conflicting signals: When MACD is positive and RSI is in the overbought area, this means the market needs confirmation.
๐น Set your stop loss: A stop loss order should be placed below the main support at $144.85 to protect yourself from any sharp reversal.
๐น Watch trading volumes: Any significant price rise should be supported by high trading volume to confirm its strength.
If you liked the analysis, support me with anything, my friend, thank you โค๏ธ