Here’s How $22.7 Support Sets $SOL for 25% Rally

Solana Price Analysis: The Solana price recovery has recently faced a significant correction after hitting the $32.1 resistance. The two weeks retracement tumbled the coin’s market value by 29%, hitting the $22.7 support. The aforementioned level aligned with several other technical supports indicates a strong accumulation zone for buyers. Can this support recuperate the exhausted bullish momentum, or could sellers prolong the correction rally?

Also Read: Veteran Investor Raoul Pal Predicts A 20x Rally in Solana (SOL) Price

Solana Price Daily Chart

• Several short-bodied candles in the daily chart reflect uncertainty among SOL traders.
• A bullish breakout of $25.7 would signal the resumption of the recovery rally.
• The 24-hour trading volume on the Solana coin is $251.5 Million, indicating a 6.4% loss.

Source-Tradingview

The falling Solana price found suitable support at the $22.7 level aligned with the 50% Fibonacci retracement level and 200-day EMA. In addition, a correction to the 50% level is considered a healthy pullback to replenish the market buying pressure. 

On July 26th, the Solana price rebounded from $22.7 support with a morning star candle pattern as an early sign for uptrend continuation. The bullish reversal surged the prices by 11.2% and marked a top at $25.68.

However, the price trend turned sideways without offering a suitable follow-up indicating some weakness in bullish momentum. If the bearish market sentiment continues to pressurize crypto buyers, the SOL price may hover above $22.7 support for a few more trading days and hint at a requirement to build enough bullish momentum.

Will Solana Price Breach the $32 Barrier?

For Solana price to get an additional confirmation of bullish recovery, the buyers would need a daily candle closing above the morning star candle pattern high of $25.68. This breakout would bolster bulls to lead a 25.6% rally to $32.1. In addition, the ongoing recovery rally in SOL price is likely influenced by the symmetrical triangle pattern breakout. As per this chart pattern explained in a previous article the SOL price could rise to the $39.2-$40 mark under strong bullish conditions.

• Moving Average Convergence Divergence: A bearish crossover state in which the MACD slope(blue) moves below the signal line(orange) indicates the correction phase has not been completely invalidated.
• Bollinger Band: the downtick in the upper ceiling of the bollinger band indicator could offer additional resistance to rising prices