Solana after selling wave: Can the upward trend continue?

This price analysis looks at Solana (SOL) and which price points are important right now.

After the wave of selling in late September and early October, Solana's (SOL) stock price dropped below the 50- and 200-day Exponential Moving Averages (EMA), technical indicators that help track the average stock price over a period of time. The positive was that the price bought up strongly the next day and managed to close above the 200-day EMA. The volume meter VPVR, which shows the volume traded over a given period, indicated that there was significant trading volume, which acted as a safety net for the sinking SOL price. Currently, it appears that SOL is forming a V pattern, a positive price pattern indicating a possible further recovery. Of course, there is still a chance that price could briefly fall back to the 50-day EMA before the upward movement continues.

Solana: Important support and resistance

On the 4-hour chart, all three major EMAs (50, 200 and 800 periods) are below the current price and meet at one point. It is likely that Solana will retest these EMAs, where it is essential that they serve as a support line. The red resistance line at $151, where the price previously experienced a pullback, indicates a strong concentration of liquidity. This can be seen as an area where price may temporarily stop before the rise continues, as liquidity often acts as a "magnet."

The Relative Strength Index (RSI), an indicator of whether an asset is oversold or oversold, is at 57 points. This indicates a slight correction without the market being oversold. The MACD, another technical indicator that measures market momentum, shows a declining positive trend, but may recover after it reaches neutral levels.

Overall, things are looking good for Solana and there appears to be a continuation of the upward trend. Still, further development remains highly dependent on how Bitcoin performs.