Solana’s price had enjoyed a free downfall since 3 December, losing nearly 39% to explore the $149.173 range low. The emerging bulling engulfing V-shaped pattern in SOL’s daily chart suggests a possible upsurge to $244. While publishing this content, SOL exchanges its price actions near $178.
SOL V-Shaped Recovery Eyes 38% Price Climb
Solana price had formed a V-shaped pattern on the daily price chart, suggesting a sharp upswing. A V-shaped emerges when crypto declines considerably and registers a steady rise.
However, SOL might not witness a complete V-Shaped recovery as it has consolidated under the 100-day SMA since 16 December. Nevertheless, the technical picture shows that the SOL price might continue the upward journey gradually, completing a V-shaped price recovery.
If Solana breaks past the 100-day Simple Moving Average of $185, it might climb, tagging the 2 December range high near $244. That represented a 38% upswing from Solana’s current price. However, bulls will have to overcome several obstacles to attain the rally. Solana’s crucial resistances stand at the 200 psychological mark, 50-SMA near 208, and a massive hurdle at $221.
The MACD confirms the bullish outlook while flashing a buy signal. That happened when the 12-day EMA crossed beyond the 26-day Exponential Moving Average early on 18 December. Nevertheless, the MACD has to cross the zero line towards the positive territory for the bullish strength to gain increased traction.
SOL/USD 4Hr Chart
Also, the Relative Strength Index illustrates the bullish momentum strength as the indicator swayed away from oversold territories. A break past the midline will trigger more buy orders expected to push SOL price high to the prevailing chart pattern’s target before overbought conditions emerge.
Meanwhile, a daily close under the closest support near $173 might catalyze intensified sell order, catalyzing another downswing. If that occurs, SOL price might retest the $161 support and 13 December range low of $149.
For now, SOL bulls seem prepared to launch a 38% rally towards $244. Also, the crypto space noted uptrends early today as Bitcoin moved past the $48K mark, trading at $48,768 at this publication. Solana will attain its enthusiastic target with fewer hurdles if markets maintain a bullish outlook.
Editorial credit: davide bonaldo / shutterstock.com
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