SOLANA price analysis: SOL price storms past the supply zone.

• The SOL token price is hovering around the supply zone on a daily time frame.
• The SOL token price is forming a flag and pole pattern on a daily time frame.
• The pair of SOL/BTC is trading at the price level of 0.0010080 with an increase of 0.89% in the past 24 hours.

The SOL token price as the price action suggests is bullish on a daily time frame. A recent bounce off the demand zone was beneficial for the token price to run on a bullish trajectory. Before the current bullish movement, the token price was lying in the long-term demand zone.

At present, the SOL token price is trading above the 50 and 100 Moving Averages after bouncing off strongly from the demand zone. The token price was facing a strong rejection from these MAs but recent bullish pressure led to the breakout of the important MA.s moving upwards. These MAs can act as a strong demand zone from where the token price can be seen rising higher again. As of now, the SOL token price is forming a higher high and higher low formation on a daily time frame.

The SOL token price is also trading at the upper band of the Bollinger band indicator after bouncing off the lower band. This comes after the token price started a bullish run, following the overall trend of the global currency markets. Volumes have increased as the token price rose. This has resulted in the increased volatility and therefore investors should remain cautious and not get carried away by the erratic movements.

The SOL token price is forming a rousing bottom pattern on a daily time frame 

Relative Strength Index: The RSI curve has smashed through the 50-point mark as the token price has risen into the supply zone. According to the price action, the SOL token price is bullish, as shown by the RSI curve. The RSI curve is currently translating at 62.60, having risen above the 50 level. The RSI curve has now crossed above the 20 EMA, indicating some bullishness. If the token price successfully breaks through the supply zone, the RSI curve will move higher, bolstering the trend.

Moving Average Convergence Divergence: The SOL token price is bullish as it rose to the important supply zone. Currently, as it trades at the supply zone, the MACD indicator has given a positive crossover. The orange line crossed the blue line on the upside. If the token price fails to sustain above the demand zone, then the fall in the price of the SOL token can result in the MACD line widening supporting the trend. 

Average Directional Movement Index: ADX curve has been dipping on a higher time frame as the token continues to fall. In a daily time frame, the ADX curve has dipped out of the 20 mark and has turned upwards. As the token price rests at the short-term demand zone on a 4-hour time frame. It is a positive sign for the token price. Investors should wait for a positive candle formation at the demand zone.

Conclusion: The SOL token price is bullish forming a bullish chart pattern. As the technical parameters suggest, the token price can be seen breaking the supply zone if bears fail to power it down. It remains to see if the token price will break the demand zone, or bounce off it. 

Support: $21.50 and $20.50

Resistance: $26.50 and $28.90

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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