The daily chart shows that the price of Solana has experienced a strong recovery in recent months, rising from $95 in April to $204 today. Recently, it transformed the important resistance of $186.90 into support, invalidating a double top pattern that was forming and whose neck was at $125.9. The double top is one of the most common bearish patterns in technical analysis.
Most importantly, the price of SOL is about to form a golden cross pattern, as the 200-day and 50-day moving averages have crossed. This cross usually generates double-digit gains. For example, the last time the price of Solana formed this cross was in October 2023, when it was trading at $25. It then reached an all-time high of nearly $300 in January of this year.
The Relative Strength Index (RSI) has risen to 82, while the Percentage Price Oscillator (PPO) has surpassed zero. The PPO is a popular indicator created by modifying the MACD.
Therefore, it is likely that the price of Solana will continue to rise, with the next target to consider at $294, its highest level in January. This increase implies a 43% gain from the current level. A drop below the golden cross point at $160 will nullify the bullish forecast for the price of SOL and point to a further decline.
