Has Solana (SOL) Hit Its Bottom? Ready for a Rally? Price Analysis

A 25% correction in the Solana (SOL) price may be over. There are signs that $SOL has potentially made a bottom. Could a relief rally be about to take place, or could this even be the start of a prolonged rally back to $250 and beyond?

Signs a $SOL bottom might be in

Source: TradingView

While these might be early hours in which to call a bottom for the $SOL price, signs are emerging that this could well be the case. The 4-hour chart reveals the long descent inside a channel which even brought the price below the major $200 horizontal support level, as well as a longstanding trendline.

Nevertheless, it may be that this trendline could have held the price up, provided of course that the price does not dip and confirm below from here. The next sign is a potential double bottom. This is illustrated by the two small green arcs. Finally, a third sign is the emergence of bullish divergence in the RSI. Such a low dip to the 15.00 level has not been matched since January this year. This resulted in an upward trend in the RSI, while the price action continued to fall. This must be considered as the strongest case for a $SOL rally from here. One last dip to confirm the ascending trendline as support could see the back of the bearish price action and an upward surge could follow.

A trend break confirmation on the daily?

Source: TradingView

There is still a concern on the daily time frame in the form of a potential confirmation of the break of the ascending trendline. The fact that this is also a strong resistance level lends credence to the scenario of a confirmed trend break here.

That said, at the bottom of the chart, the Stochastic RSI reveals the indicator lines at the very bottom, with a possible cross-up already taking place. This would favour the bulls and signal upside price momentum once the indicator lines get above the 20.00 level.

Strong $SOL support levels below

Source: TradingView

The weekly chart gives a bird’s eye view of price action for $SOL and reveals the support levels below, should the price fall through the trendline. $188 is a very strong level that has mainly provided resistance in the past, so it should be a really solid support level if the price does get there.

At the bottom of the chart, the Stochastic RSI indicators have crossed down once again. This reflects the drop in the price action. It may be that these indicators continue to bounce along the top of their limit. If they don’t bounce, the resulting drop would take the $SOL price much lower, with a descent into a bear market not out of the reckoning.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.