Solana’s price may be looking to reverse bearish momentum, as the market’s Stochastic Oscillator flashes bullish divergence.
One of the Ethereum network’s top competitors, Solana ($SOL) looks to be gearing up for some bullish price action – provided it doesn’t do another stint in the indecisive price action doldrums. The market has endured a severe shellacking (price-wise) in recent months, on the back of $BTC’s bearish momentum, but it may be looking to reverse.
It appears as though the $SOL/USDT market (prices taken from Huobi, streamed through TradingView) is gearing up to retake previous highs, as of today’s trading action – as it currently stands – seems to be forming a bullish harami pattern, which follows a larger bullish harami pattern Prices have recovered about 7% (thus far,) from yesterday’s drop.
This is a mere blip in the radar compared to the 69% bearish run sustained over the past few weeks. The pullback registers at the 50% Fibonacci level, which isn’t very surprising, given that Solana is – at this point – a popular market.
The market fell from an All-Time-High of $259 – shattering several price floors – over the past 78 days, finding a current low of $80. That’s quite the doozy of a fall. The market seems to be looking to recover, however, candlesticks have formed two consecutive harami patterns.
$SOL seems to be looking to test support at the $79 level. At the time of writing, priced at $93.54 Solan opened the day at the $87.42 price level, before zipping downward, to establish a current low of $83.49.
The market’s Stochastic Oscillator currently sits in the oversold position and is flashing clear bullish divergence, when compared to price action. We also have what seems to be a bullish crossover coming into formation, as the last line has just peeped over the slow line.
The MACD Moving Averages have established 3 bottoms. The indicator’s histogram, on the other hand, though still in a negative position, has begun to lighten, offering signs that the market may begin to tick upwards, if it doesn’t go into consolidation, that is.
The Ichimoku’s Chikou Span has begun to point upwards, following its latest low. The Tenkan is still below Kijun, with both Moving Averages currently looking as though they may begin to run flat. Senkou A is also taking a flat stance, while Senkou B runs downward to meet it. Indicating that the market may soon see some upward momentum.
The next resistance levels to beat are the $101, and 125, but if prices break beyond the $253 resistance level, we may see $SOL prices rise to $380-460 price levels. Which would spell decent profits for anyone trader, prepared to wait out the ebb and flow of the markets.
