Solana (SOL) is currently trading near $153.71 after experiencing a 4.4% drop within the past 24 hours and a 4% decline over the week. Despite this decline, recent chart analysis suggests an emerging bullish trend for SOL. Analyst Batman notes that price appears to have bottomed out. He highlights that a bullish divergence between SOL’s price action and the Stochastic Oscillator is present. This signifies potential shift in momentum as price continues to make lower lows while the oscillator prints higher lows, often considered an early signal of changing trends. ☀️ 📈
The 3-day chart reveals SOL holding above its July fair value gap (FVG), a support level situated between $155-$160. This support zone has been crucial during past corrections. Currently, price is reacting at this key area after experiencing multi-week downtrend.
A golden cross on the Stochastic Oscillator indicates potential recovery, as the faster-moving line crossed above the slower one in the oversold zone. 📈 🥇
To confirm a stronger uptrend, SOL needs to break out of its current downtrend and stay above the FVG zone while forming higher lows.
Resistance levels at around $172-$180 may determine if SOL enters recovery or resumes its downward trend. If momentum continues, price could potentially reach $175-$185 as the next test of strength. 📈🚀
However, volume and price action over the coming days will play a crucial role in determining the direction of SOL’s movement.
Short-term bounce or deeper pullback? In the 1-hour chart shared by MoreCryptoOnl, SOL bounced from support near $151.18-$158.46, corresponding with several Fibonacci levels and suggesting a corrective B-wave. The chart indicates resistance around $172, $179.75, and $180.99.
“Solana is moving up in the white B-wave,” MoreCryptoOnl suggested, but rejection at these resistances could trigger a new leg down.
A clear move above the $180 zone would be crucial to change this outlook. Failure to hold above $151 could lead to lower targets around $126 based on the extended corrective structure outlined in the chart.
Traders remain cautious, waiting for confirmation from either direction before taking a stance.
Disclaimer: The information provided is general market commentary and not considered as investment advice. Before making any investments, please conduct your research.