Rebounding at Critical Support, Solana Sees More Gains Despite Market 0ptimism

According to the SOL cost anticipation, Solana has bounced back from a pivotal cost point and checked a crucial level of support. On 12th June, SOL was increasing and gained a daily top of $161. 5. This increase coincides with a broader market recovery that was set off by cryptocurrency investors’ enthusiastic reaction to the most recent U.S. Consumer Price Index (CPI) data.

Trading activity on Solana’s chart indicates that the price dropped slightly after hitting the high of $161.5 but found consistent support close to $150, a critical level that has traditionally served as both resistance and support. This zone can be viewed as a rebound or support level for the currency because it aligns with Solana’s long-term rising support trend line. This makes the zone highly significant.

Solana Maintains Over $152. 0

Based on a 4-hour chart analysis, Solana (SOL) appears to be recovering following a period of volatility in the cryptocurrency markets. The upper and lower Keltner Channel lines, which provide details on the asset’s volatility and price swings, indicate the range within which SOL has been oscillating on the chart.

As of this writing, SOL is close to the channel’s lower border, indicating a support level of roughly $152.12. This level can be considered as a critical level for Solana as it attempts to recover because it is marginally above the recent lows.

 

The 4-hour chart’s technical indications indicate that traders are generally positive. The cryptocurrency is oversold, according to the Money Flow Index (MFI), which is now at 23.07, indicating that the selling pressure may be lessening and may even reverse if the purchasers withdraw.

Additionally, a higher Aroon-Up line (71.43%) is shown by the Aroon Indicator than a lower Aroon-Down line (35.71%), suggesting that upward movement may be starting to gain traction. These signals suggest that there may be a positive shift coming soon if Solana’s price can hold above these levels.

SOL Price Anticipation: Since March, the cost has fall 25%, trying the critical $153 support zone.

Under the weight of a 25% decline from its annual high of $210 in March 2024, Solana’s (SOL) price has been trending lower over the past few days, and it is currently trading at the long-term support level. SOL has recovered to $153, a horizontal support level that is both a strong level of support and the intersection of a long-term ascending support trend line. The present upward trend may come to a stop if this level is broken.

Bearish Divergence together with Technical Signs

Upon chart analysis, the weekly Relative Strength Index (RSI) shows a bearish divergence, which contributed to the downward trend. The trend was impacted and a protracted correction phase resulted from the bearish cross in the MACD that was last observed in 2021. The RSI and MACD daily frames’ present pessimistic mood suggests that the gloomy trend might persist. SOL is range-bound inside a symmetrical triangle on the daily chart, with the $153 level acting as the primary support.

Resistance at $152 holds SOL in check in the near term. If this resistance rises, the condition may improve; if it does not, the situation may get worse. A balanced triangle and an increasing support trend line explains the next support level, which is at $135.

SOL is currently on the fourth wave of a five-wave up rise, according to the wave count analysis. The triangle forming within the fourth wave, SOL breaking out, and the start of the fifth wave are the scenarios that are most likely to occur. In a more pessimistic vein, SOL might fall to less than $117, which was its price in the middle of April, before bucking the trend and rising once more.

Opinion in the Solana Showcase and Outside impacts

Overall market and macroeconomic variables also contribute to the explanation of Solana’s recent downturn. The market value of cryptocurrencies has declined by 10% in just four days, reflecting a general decline in the market.

Investor confidence has been impacted by global issues such as stock market corrections and shifts in expectations surrounding US Federal Reserve interest rate decisions. The market’s stability has been questioned in light of the recent conflicting economic signals, which has an impact on cryptocurrencies like Solana.

Solana has also had issues with MEV, as the transaction prices were altered by validators for their personal benefit. The demand for leverage through SOL futures has not been impacted in any way, despite the 15% collapse in the SOL price. SOL’s financing rate has stayed consistent, according to Coinglass, indicating that the market is calm and that there aren’t any bulls with excessive leverage.

Prospects for Recovering and Long-Term Situation

Solana is currently trading near the $150 mark, with $152 serving as the first obstacle. If this barrier is broken, there may be a brief upswing with attention directed towards the closest strong resistance level, which is $157.

Additional price rises might bring the total to around $165. However, if SOL is unable to overcome the resistance level at $152, there might be another decline, with the first major support level at $145 and the second at $135. If the cost breaks down $135, it can move forward $120.

Recent days have seen an increase in the number of freshly generated addresses on the Solana network, suggesting increased interest and investment. This may be an indication that the whales are developing Solana in prediction of a remarkable cost growth. Even while there hasn’t been much value transferred on-chain in the recent week, this indicates that there is resistance to buying pressure, which could limit the potential for growth.