Will SOL Relieve Rally Sustains Beyond $48.0?

Solana’s (SOL) price trades higher on Thursday. The buyers emerged near the support level and managed to hold the price in the green zone. The SOL price struggled to find a bullish follow-through on Wednesday. But, the price found vital support around the 50-day EMA at $41.50.

• SOL price manages to print modest gains following a corrective pullback.
• The recent price action suggests bulls’ attempts to breach the critical 50-day EMA.
• A daily candlestick below $39.50 would be a sign of trend reversal.

As of publication time, SOL/USD reads at $43.04, up 2.43% for the day.

SOL price extends gains

On the daily chart, SOL has formed the “Cup and Handle” formation, a bullish continuation pattern. This also coincides with the crucial 50-day (EMA) Exponential Moving Average. The price was retraced from the recent highs of $0.48 to retest the formation. 

Now, the formation of a ‘hammer’ candlestick pattern validated the mentioned pattern. Amid bullish sentiment, the bulls would attempt to take out Tuesday’s high of $47.40. 

Next, the market participant would take out the $50.0 psychological level.

On the hourly time frame, the price has traded in a rising channel since July 13. However, it breaks down the lower trend line of the channel which risks the downside. But, the bulls managed to sustain the previous swing lows.

The price took support at the double bottom structure near $40.0. It breached the 50-day moving average with a strong green candlestick. The volume also supported the move. 

On moving higher, the bulls aim for $48.0 as the immediate first target.

On the contrary, if the price moves below the session’s low then it would be a negative sign. The sellers would step in to achieve the lower target of $34.0.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

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.