- SOL price lost about 31% within the last eight days, hitting the 200-day Simple Moving Average at$135.16.
- A recovery past the weekly resistance mark near $135.71might catalyzes a 25% upward move to $169.79.
- A 4hr candlestick close under $114.51 will cancel the bullish scenario for Solana.
Solana’s price has witnessed a substantial decline within the past week. That came amid bloodbaths in the cryptocurrency marketplace. Though the downswings might mean bearish for the alt, it had SOL reaching an inflection zone, giving it’s a comeback chance.
SOL Price Appears Ready for Recovery Rally
Solana’s price lost nearly 31% since 2 January and appeared to form a base around the weekly support mark of $135.71. Nevertheless, yesterday’s crash pushed Solana beneath the mentioned floor and well under 200-day Simple Moving Average around $135.16.
Market players need to beware that the 200-day Simple Moving Average and weekly support area lies within the daily demand territory that extends between $115.51 and $144.70. Therefore, this support levels cluster presents a massive confluence that Solana bears might not sustain a break.
With that, market players can expect the SOL price to launch a 25% upsurge to retest the daily supply zone’s lower liming, ranging between $169.79 and $179.19. The 6 January swing high near $154.32 may present a temporary hurdle, but the bull can overcome it.
In some scenarios, the SOL price might retest the weekly resistance zone at 4174.37 within the daily supply territory, bringing the overall surge from 25% to 28%.
Though things seem upside for SOL price, a 4hr candle close beneath the 24hr demand regions bottom limit around $115.51 will print a lower low. Such a move will show bearish favoritism and cancel the bullish case for Solana. That way, the alternative token might revisit the support zone at $110.35.
The current downtime in the financial markets might mean lucrative upswings for Solana. The alt needs to reclaim the $135.71 weekly resistance for a 25% upsurge towards $169.79.
However, SOL bulls should prevent a 4hr candlestick close under $115.51 to keep in bullish narrative alive. Nevertheless, broad market sentiment may be vital for SOL’s directional bias.
Editorial credit: davide bonaldo / shutterstock.com
