Solana (SOL) worth has been on a free-fall since December 03 shedding roughly 39% in direction of the vary low at $149.173. The looks of an engulfing the bullish V-shaped chart sample on the every day chart factors to a potential upswing in direction of $244. On the time of writing, Solana worth is exchanging fingers at $178.
Solana worth V-Formed Restoration Goals For 38% Upswing
SOL worth has spelt out a V-shaped chart sample on the every day chart, indicating a pointy restoration. A V-shaped sample is created when an asset falls considerably after which makes a sustained upswing. Though, Solana’s restoration is probably not as sharp as a V-shaped restoration would recommend as a result of it has been consolidating under the 100-day Easy Transferring Common (SMA) since December 16. However the technical outlook means that Solana worth might proceed the uptick and full the V-shaped restoration.
As such, if SOL worth breaks above the 100-day SMA at $185 it could rise to tag the December 02 vary excessive round $244, representing a 38% rally from the present worth.
However earlier than reaching this goal, Solana bulls have to beat important resistance posed by the 200, psychological stage, 50 SMA at 208 and the $221 main resistance stage.
The bullish narrative has been strengthened by a purchase sign from the Transferring Common Convergence Divergence (MACD) indicator. This occurred when the 12-day Exponential Transferring Common (EMA) crossed above the 26-day EMA earlier on December 18. Notice that the bullish momentum will achieve extra traction as quickly because the MACD crosses the zero line into the optimistic area.
SOL/USD 4-Hour Chart
The energy of the bullish momentum can also be illustrated by the Relative Power Index’s (RSI) motion away from the oversold areas. A break above the midline will initiated extra purchase orders which can be anticipated to propel Solana worth in direction of the goal of the prevailing chart sample earlier than overbought circumstances come into play.
Wanting Over the Fence
On the flipside, a every day closure under the fast assist at $173 might set off huge promote orders triggering one other downswing. If this occurs, Solana worth may re-test the assist at $161 and the December 13 vary low at $149.