Solana is displaying signs of recovery with promising technical indicators. The MACD is nearing a golden cross formation, while the BoP indicator confirms the uptrend momentum. Tech investors will closely monitor these developments.
Solana, the fifth-largest cryptocurrency by market cap, appears poised to get back on track after a recent dip due to the market’s overall weakness. Investors are closely monitoring the technical signals suggesting an imminent trend reversal.
The Moving Average Convergence Divergence (MACD) on Solana’s daily chart is nearing the formation of a golden cross, a technical pattern often seen as a strong buy signal. When the MACD line crosses above the signal line, it typically confirms a sustained bullish momentum. Technical traders closely watch these MACD crossovers as they can act as important timing indicators to identify market entry opportunities.
Simultaneously, Solana’s Balance of Power (BoP) indicator shows a positive reading of 0.36, reflecting renewed buying pressure from market participants. A BoP reading above zero indicates that buyers dominate activity, creating a bullish momentum. This contrasts with periods where the BoP is negative, indicating seller dominance and bearish sentiment.
The combination of an imminent MACD golden cross and a positive BoP creates a very favorable technical environment for Solana’s price appreciation in the mid-term. These signals suggest that selling pressure is waning as buying interest starts to accumulate at current levels, around $152.
In the short term, Solana could target the $157.92 resistance level, followed by a potential test of the $165.12 area if bulls manage to maintain control of the market. However, investors must remain vigilant against any sudden trend reversals as volatility remains high in the crypto markets.
In case of a downturn, the support at $140 could be lost in the short term, with a potential bounce around $138.
The Volume Profile also paints an optimistic picture with significant liquidity at current levels. In other words, SOL has all the makings to hold above $140 and pave the way towards $200 above $152.
Overall, Solana’s technical indicators are sending encouraging signals regarding the possibility of a bullish reversal in the weeks to come.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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