The SOL price recovery rally offering a breakout from another resistance should you buy this?
Published 18 hours ago
In the last three weeks, the Solana coin price has outperformed some major cryptocurrencies as it registered nearly 40% growth when rising from the $17.4 to $24.6 mark. Amid this rally, the coin price gave a high momentum breakout from the local resistance of $22.2 indicating the buyers are ready for further gain. But Is this momentum enough to trigger a sustained recovery in the SOL price?
Also Read: Solana On An Unstoppable Rally to $25, DeFi TVL At 2023 High
Key Resistance Breakout Set a Quick 11% Jump
- A bullish breakout from the $22.2 set SOL price for an 11% rise
- A bullish crossover between the 20-and-50-day EMA coils fuels the bullish sentiment among traders
- The 24-hour trading volume on the Solana coin is $470 Million, indicating a 13% loss.
Source-Tradingview
On October 1st, the SOL price witnessed an 11% surge which gave a decisive breakout from the local resistance of $22.2. This breakout backed by increasing volume reflects the buyer’s conviction to rise to higher levels.
However, with the leading cryptocurrency Bitcoin reverting from the $28,500 level, the SOL price coin price witnessed an additional surge in supply pressure around the $24.5 mark. This resulted in a minor pullback which is useful to retest the support power of the breached level.
As the coin price shows sustainability above the $22.2 mark, the buyers could rise 11% and challenge the $25.5 mark. However, a look at the bigger picture indicates the ongoing recovery in SOL price is able to settle within the channel pattern.
The rising coin price is expected to chase the upper trend line of the channel pattern. A breakout from either of these trendlines could trigger a directional rally.
SOL vs BTC Performance
Source: Coingape| Solana Vs Bitcoin Price
Studying the last three months of price behavior between the Solana coin and Bitcoin price, the SOL price has witnessed a steady downfall with a set of new lower low and low right. However, the BTC price continues to stay on a sideways trend.
- Relative Strength Index: The daily RSI slope above 60% reflects strong bullish momentum for an upswing.
- Exponential Moving Average: The coin price trading above the daily EMAs(20, 50, 100, and 200) indicates a bullish stance on this coin.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/will-sol-price-recovery-retake-the-30-mark-in-october/