The AO indicator showed a positive signal, suggesting that investors might obtain higher profits. If the bulls break above USD 15.1 and USD 16, the next resistance level will be USD 18.8.
The price of Solana (SOL) recently recovered by more than 9% after a period of slow action. Despite its slow rise, the altcoin might show a rebound in the coming trading sessions.
The slow re-entry of buyers into the market indicates an accumulation of SOL, but capital inflows were low. A constant bullish price action will allow for a positive change in the influx of funds.
After making small daily gains, the next resistance level for SOL is USD 15. If the price of the cryptocurrency breaks above USD 15, it can go as high as USD 18.
Although the price of SOL has recovered, it is not yet possible to tell whether it is out of danger. The bears might cause the altcoin to drop to its nearest support level.
The Technical Analysis Indicates the Price of SOL Might Rise
In November, the price of Solana suffered a considerable drop, entering the oversold region twice. However, there has been an increase in demand for the cryptocurrency recently.
The Relative Strength Index (RSI) showed a rebound, gradually approaching the 40 mark, denoting an increase in accumulation. The price of SOL also broke above the 20-day SMA, indicating optimism among buyers.
SOL has been a mundane performer regarding institutional interest for months. Despite its recovery, its capital inflows have been low due to the weakness in the market.
The Chaikin Money Flow (CMF) indicator was below the midline, revealing that outflows exceeded inflows. Meanwhile, the Awesome Oscillator (AO) showed a positive signal related to buying the altcoin, suggesting further gains for investors.
The Analysis of Solana Suggests It Might Reach USD 18.8
As the price of Solana changes direction, daily actions suggest a lack of trading activity. If the cryptocurrency behaves like it did earlier this month, it might reach around USD 5 before recovering.
The validation of a correction before buying would only be possible if it rises above the USD 16 level. A considerable adjustment above USD 20 might create a test of the USD 25 breakout level before falling again.
Although the price of SOL remains in a neutral-bearish trend, the bulls need to break above USD 15.1 and USD 16. If they do, the next resistance level will be USD 18.8, while the next resistance will be USD 23.3.
If SOL continues to drop over the next seven days, the support at USD 11 will be crucial for the bears. Given that scenario, the support level to watch is USD 8, followed by a possible bottom at USD 5.
Solana is trading at around USD 13.85 and has accumulated a 0.4% gain over the last 24 hours. While its daily trading volume is above USD 331.27 million, its market capitalization is about USD 5.03 billion, according to CoinGecko.
Investors should research SOL or any other cryptocurrency before buying it to learn about its all-time high, behavior, and possible future prices. It is only a matter of time before seeing where the market will take the value of that crypto asset.
By Alexander Salazar
