Solana price analysis: SOL recovers $12.30 as bulls retaliate

TL;DR Breakdown

• Solana price analysis suggests an upward movement to $12.50
• The closest support level lies at $12.00
• SOL faces resistance at the $12.59 mark

The Solana price analysis shows that the SOL price action has stabilized at $12.00 and moves to recover $12.50

The broader cryptocurrency market observed a bearish market sentiment over the last 24 hours as most major cryptocurrencies recorded negative price movements. Major players include ETH and XRP, recording a 1.98 and a 0.45 percent decline, respectively.

Solana price analysis: SOL stabilizes at $12.00

The MACD is currently bullish, as expressed in the green colour of the histogram. However, the indicator shows low bullish momentum as observed in the low height of the histogram. On the other hand, the indicator’s darker shade suggests that the bullish momentum has started to increase as the price action finds support at the $12.00 mark and rises back to $12.50.  

The EMAs are currently trading below the mean position as net price movement over the last ten days remains negative. However, as the two EMAs start to diverge, the 12-EMA has started to show an upwards rotation suggesting an increasing buying potential. At press time, the 12-EMA is headed upwards while the 26-EMA moves horizontally suggesting an increasing bullish momentum across the short-term charts. 

The RSI was trading in the oversold region yesterday as the index dipped in and out of the region. Now, the index is trading at the 44.07 unit level with a steep upwards slope. The indicator does not issue a signal at the moment while the strong upwards gradient suggests strong buying activity in the markets.

The Bollinger Bands were expanding to facilitate the volatile movements but narrowed as the price stabilized at the 12.00 mark. Since then, the bands started to converge as the buyers initiated a bullish rally toward the $2.50 mark. At press time, the indicator’s bottom line provides support at $12.01 while the upper limit presents a resistance level at the $12.59 mark.

Technical analyses for SOL/USDT

Overall, the 4-hour Solana price analysis issues a sell signal, with 10 of the 26 major technical indicators supporting the bears. On the other hand, seven of the indicators support the bulls showing a significant bullish presence in recent hours. At the same time, nine indicators sit on the fence and support neither side of the market. 

The 24-hour Solana price analysis shares this sentiment and also issues a sell signal with 13 indicators suggesting a downward movement against only six of the indicators suggesting an upwards movement. The analysis shows bearish dominance across the mid-term charts while significant buying pressure exists for the asset across the same timeframe. Meanwhile, seven indicators remain neutral and do not issue any signals at press time

What to expect from Solana price analysis?

The Solana price analysis shows that strong bearish momentum enabled the bears to cause a price drop to the $12 mark. However, the bulls found support at the level that enabled them to stabilize the price action. Now, the buyers are initiating a bullish rally with the aim of recovering the $12.50 by today. 

Traders should expect SOL to continue its steady bullish movement as the price approaches the $12.50 resistance level. The suggestion is reinforced by the mid-term technicals which, although bearish, show a shift of momentum from the bears to the bulls as observed in the drift between the 4 and the 24-hour analyses. However, if the bears persist and cause a drop below $12.00 mark, next key support lies at the $11.00 mark.