Solana jumps past key selloff junction: SOL price eyes $150 in April

2 years ago

Solana (SOL) jumped past a captious absorption level that had constricted its betterment attempts during the November 2021-March 2022 terms correction aggregate times, frankincense raising hopes of much upside successful April.

Solana flips cardinal absorption to support

To recap, SOL's price underwent utmost pullbacks upon investigating its multi-month downward sloping trendline successful caller history.

For instance, the SOL/USD brace dropped by 60% 2 months aft retracing from the said absorption level successful December 2021. Similarly, it had fallen by implicit 40% successful a akin retracement determination led by a selloff adjacent the trendline successful November 2021.

But Solana flipped the absorption trendline arsenic enactment (S/R flip) aft breaking supra it connected March 30, accompanied by a emergence successful trading measurement that showed traders' condemnation successful the breakout move. In doing so, SOL's terms rallied by 25% to scope $135, bringing the intelligence absorption level of $150 wrong reach.

Why is SOL (technically) bullish?

From a method perspective, SOL's breakout determination supra its falling trendline resistance coincided with a bullish crossover betwixt its 2 cardinal moving averages: the 20-day exponential moving mean (20-day EMA; the greenish wave) and the 50-day EMA (the reddish wave).

Dubbed the golden cross, the method indicator occurs erstwhile an asset's short-term moving mean jumps supra its semipermanent moving average. Traditional analysts see this crossover arsenic a buying signal.

For instance, the 20-50 EMA crossover successful August 2020 whitethorn person assisted successful pushing SOL's terms upward by much than 650% to implicit $267, successful summation to other cardinal and method catalysts. As such, the aureate transverse boosts SOL's likelihood of continuing its rally, arsenic good arsenic its breakout supra the falling trendline resistance.

RSI divergence

The upside prospects summation further if a method fractal highlighted by Delphi Digital is to beryllium believed.

The crypto probe steadfast highlighted a correlation betwixt SOL's terms and the operation of its 2 method indicators: the S/R flip and comparative spot scale (RSI) divergence.

Notably, the archetypal clip Solana's RSI jumped supra 70, an "overbought" area, aft a beardown terms uptrend — that had it besides interruption supra the descending trendline enactment of that play — SOL tended to proceed rallying contempt its RSI consolidating little oregon sideways.

For instance, SOL rallied 378% aft the archetypal clip its RSI broke supra 70 successful August 2021. Similarly, the play of an overbought RSI during May-June 2021 besides coincided with Solana's 268% upside move. The fractals appeared akin to however SOL has been performing lately, suggested Delphi Digital.

Therefore, SOL/USD could continues its uptrend erstwhile utilizing Fibonacci retracement levels, drawn betwixt $261-swing precocious to $77.50-swing low, suggesting $147-$150 arsenic the interim upside target.

Conversely, a pullback upon oregon up of investigating the $147-$150 terms scope tin effect successful SOL retesting the $120 arsenic its interim support, with a imaginable descent toward the 20- and 50-day EMAs.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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