SOL Down 12% Weekly But When Will it Recover? Three Signs to Watch (Solana Price Analysis)


Solana found good support and may attempt a reversal next.

Key Support levels: $78

Key Resistance levels: $104 

1. Sellers Hold Strong

SOL’s price briefly fell under $80 and quickly recovered from the key support. Now, buyers appear determined to continue this push. If they succeed, it could put a stop to this corrective move that started in late December.

Chart by TradingView

2. Early Bullish Signals Appear

The buy volume increased in the past two days, which also explains the recent price action and bounce. If this continues, then the bulls might have a good chance to challenge the bears and take back control.

SOLUSDT_2024-01-25_14-35-24
Chart by TradingView

3. MACD Bullish Histogram

While SOL’s price made a lower low, the MACD histogram on the daily timeframe is making higher lows, which confirms a bullish divergence. This could be an early sign that sellers have become exhausted, and buyers could return.

SOLUSDT_2024-01-25_14-35-53
Chart by TradingView

Bias

The bias for SOL is neutral.

Short-Term Prediction for SOL Price

As long as the key support at $78 holds, Solana has a good chance of reversing this downtrend and attempting to recover some of the most recent losses.

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Cryptocurrency charts by TradingView.



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