Solana Price Prediction: SOL Could Rally To $120 If Bulls Clear Key Barrier

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SOL Could Rally To $120 If Bulls Clear Key Barrier – Crypto News

Published

1 year ago

February 23, 2024

Dripp

Solana price prediction: SOL has witnessed a generally upward momentum in its trading performance over the recent month, indicating a bullish sentiment among investors. The price of Solana (SOL) has formed consecutive bearish candlesticks weekly but managed to secure a closing price above the $100 mark. In the latest 24-hour trading period, Solana price has increased by 2%, pushing the price to $104.

Looking at the weekly chart, SOL’s price trajectory shows a rebound from a low point of $79 in January. The subsequent weeks have seen a formation of bullish candlesticks, propelling the price to a peak of $119. Currently, Solana holds a strong market capitalization, standing at $45 billion, which ranks it as the fifth-largest digital currency in market size. However, there’s been a slight 8% decrease in trading volume, amounting to $2 million over the last day.

Solana Price Prediction: Navigating Symmetrical Triangle

The trend direction appears ambiguous in the daily time frame due to mixed price movements and an uncertain wave pattern. SOL has been trading within a symmetrical triangle since reaching its peak in 2023. This pattern is typically seen as neutral, suggesting that future price movements could either break upwards or downwards.

Solana price prediction

SOL’s market landscape in February 2024 reveals a positive trend, with the cryptocurrency marking an upward path. However, over the past week, SOL has seen a decline exceeding 9%. Solana’s price has fluctuated, ranging from $114 to $103, initially hitting the resistance level at $114 before descending to the support level at $103.

The focus within the crypto community has largely been on Solana (SOL) Total Value Locked (TVL), particularly in light of its recovery efforts after the FTX debacle. Data from DefiLlama indicates a steady rise in Solana’s TVL since October 2023, achieving a significant breakthrough in December by recording a TVL of roughly $2.069 billion, marking its highest in over a year.

However, a recent dip to around $1.9 billion in its TVL suggests challenges in sustaining the growth momentum previously witnessed. This TVL fluctuation is pivotal for evaluating Solana’s enduring appeal and stability as a platform for decentralized finance (DeFi).

Technical Indicators Favor a Bullish Outlook for Solana

The bullish momentum within the Solana market is intensifying, signaling a potential push toward the $100 resistance barrier. Achieving and sustaining this upward trend could quickly elevate Solana to the $120 threshold, signaling a robust recovery and strength. Conversely, a setback at this resistance could precipitate a downturn, with the $90 mark poised to be a vital support level for SOL.

The Moving Average Convergence Divergence (MACD) indicator underscores the bullish sentiment as the MACD line surpasses the signal line. Additionally, a green histogram within the MACD suggests an uptick in buying activity, hinting at a positive trajectory for growth.

On the daily chart, the Relative Strength Index (RSI) hovers around the critical 49 mark, suggesting a bullish outlook in the near term despite the neutral level. Furthermore, positioning the 20 Exponential Moving Average (EMA) above the 50-EMA is traditionally viewed as an indicator of potential upcoming advances, offering a hopeful outlook for Solana’s market performance.