Potential recovery for Solana looms despite continued bear market conditions, a leading crypto analyst on the X platform (formerly Twitter) recently reported that the TD Sequential indicator issued a buy alert for SOL on its daily chart.
Since April 2024, Solana’s price has been fluctuating in a parallelial descending channel, and is now testing its lower bounds, and past price patterns point to the possibility of an imminent sharp rise, with expectations of $154 and possibly $187 in the foreseeable future.
Solana buy chance emerges, but bears still in control. TD Sequential buy signal amid weak buying pressure. #Solana #SOL #Crypto
— Finixyta (@finixyta) September 7, 2024
Currently, SOL – the fifth largest cryptocurrency by market capitalization at $59.56 billion – is trading down 2.61% in the last 24 hours at $127.10, with a daily trading volume of $3.44 billion.
Despite the decline, the alert from the TD Sequential Index offers hope for a possible rally, but close resistance levels and negative market sentiment could limit the SOL appreciation in the short term.
Solana price technical analysis: support and resistance levels
Despite the TD Sequential buying alert, Solana’s price continues to suffer from downward pressure, with the SOL/USD pair trading below key resistance levels, with the price currently facing a strong resistance line around $131.16 as it approaches the 50-day Exponential Moving Average (EMA-50) line at $132.96.
The current RSI reading at 43 indicates a decrease in momentum and a continuation of bearish mood.
The nearest resistance levels are at $131.16 followed by stronger resistance levels at $137.51 and $143.27.
The nearest support levels settle at $120.71, with $115.86 and $110.16 after which additional support areas can be provided.
On the other hand, the price of SOL may rise a lot if it succeeds in breaching the level of $ 131.16, and then it can target the levels of $ 137.51 and $ 143.27, but if it fails to do so, it may face additional selling pressure, as breaking the level of $ 120.71 may lead to additional declines that push it to test the levels of $ 115.86 and $ 110.16.
Despite the hopeful buying alert, traders should always be cautious as the bearish mood continues to dominate market participants.
Conclusion: Solana is at a critical crossroads
Solana’s current state reflects a complex combination of optimism in the foreseeable future and the possibility of sustaining long-term selling pressures, with the TD Sequential Buying Alert offering hope for a potential rise with targets at $154 and $187, while the $131.16 resistance remains a significant dishuff. SO, THE HYPE SURROUNDING MUSKSAV’S LAUNCH MAY CONTRIBUTE TO INCREASED ACTIVITY ON THE SOLANA BLOCKCHAIN, HELPING SOL REGAIN MOMENTUM.
Key Points:
Solana is facing close resistance at $131.16, with subsequent resistance levels at $137.51 and $143.27.
The crucial support is at $120.71, with declines likely to continue and test $115.86 and $110.16.
A reading of the RSI value of 43 and the stability of the EMA-50 line at $132.96 indicate the continuation of the bearish mood.
Overall, Solana’s price outlook remains cautious for now, a breakout of $131.16 upward could tip the scales in favor of the uptrend, while failure to do so could lead to further declines that would prompt him to test subsequent support levels at $115.86 and $110.16, and investors should keep a close eye on these levels to assess the next moves.
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