Price action in the Solana market has held – somewhat – true to our last prediction. Auctioning just above the $101 resistance level, $SOL seems to be ready to recover from a pullback.
It appears as though our last prediction on the Solana ($SOL) market held true, somewhat. The SOL/USDT market had the $101, and $125 resistance levels to break through before we could be confident of solid bullish price action. So far, the market – last reported to be auctioning at the $93 level – has crossed over the first resistance level, and stopped just shy of the $125 level, reaching a local high of $121.
Where to from here? One might be asking themselves. We revisit the $SOL market chart to take a gander at what may be.
Still shy of the $259 all-time high established about three months ago, according to Huobi charts, streamed through TradingView, $SOL is priced at $103 at the time of writing. The high for the day sits at $113. The asset shed about $10 during a morning attack, to establish a daily low of $103 after having opened at the circa-$111 level.
The price is about 12% down from the local high of $121.95 and is probably getting set to leap, after pulling back past the $111 support level. If a low has indeed been established, then a leap past the $125 level may surely be in the cards.
Once again, if $103 is a good level to leap from, then Solana may be headed for the $133 – $148 price levels before taking another bow. Sell volume seems to correlate with our theory, as it is registering quite low, though the candle formed – at present – looks to be a bearish belt-hold. If things go the other way, then we still may see prices break below $101 before things turn around.
The MACD indicator’s histogram, since our last run, has broken positive. It has gone light since the wrap of the previous bullish thrust, but that isn’t necessarily bad news. We have not yet seen a bearish crossover on the MACD’s moving averages, though the fast line seems to be beginning to pull slightly towards the slow line.
The Stochastic, on the other hand, seems to sing a different song however, as the slow moving average is above the fast moving average. There isn’t much divergence to speak of though, which may indicate a pullback – as opposed to an all-out reverse in fortunes.
The Ichimoku’s Chikou span is registering higher lows, while the Tenkan line has risen toward price action. Tenkan and Kijun are – at present – squeezing close together, which whispers of impending volatility. Senkou lines, on the other hand, are running flat, and still quite widely dispersed. We may still be in for a run of consolidation, or things may be working on resuming bullish action.
It remains to be seen, as to which way markets may turn. At present, however, it is quite likely that the $SOL market may go on to challenge previous highs, though a touch of consolidation is not ruled out.
