Solana Price Prediction: The rising selling pressure at $34 hints the SOL price could see a minor pullback before the next leap
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Solana Price Prediction: The Solana coin has seen significant growth since mid-September, surging from $17.41 to its current trading price of $31.99—an 84% increase. However, this bullish momentum is currently experiencing resistance at the $34 level, owing to increased selling pressure in the broader crypto market, particularly as Bitcoin struggles to break past the $35,000 mark. Will this overhead supply lead to a new correction?
Overhead Supply Hints Upcoming Pullback
- A fake breakout from the $32 resistance sets the SOL price for a minor pullback
- The SOL price may face intense supply pressure $36 mark
- The 24-hour trading volume on the Solana coin is $539 Million, indicating a 43% loss.
The daily timeframe chart reveals that the Solana price has been trading within a rising channel pattern, maintaining a long-term uptrend. Under the influence of this pattern and prevailing bullish momentum, the coin price could surge 12% to hit the overhead trendline around $36.
While the asset has recently reclaimed the $32 level, the overhead supply seems to be preventing further upside, suggesting that a minor pullback could be on the cards. By the press time, the SOL price trades at $31.83, with a modest growth of 0.3%
Historical data shows that previous pullbacks never went below the 50% Fibonacci retracement level, indicating that any upcoming pullback could potentially find support around the $25.7 mark to rejuvenate bullish momentum.
Can SOL Price Fall Back to $20?
In the near term, the SOL price appears to be on a bullish trajectory. However, investors should watch for significant selling pressure around the $36 resistance level. The asset has historically faced significant selling pressure upon retesting the upper trendline of its channel pattern, currently situated around $36. Previous interactions with this resistance have led to major corrections, and a similar occurrence could send the price tumbling down to the $20 range.
- Moving Average Convergence Divergence: The MACD(blue) slope moving above the signal line reflects a strong bullish trend in this asset.
- Average Directional Index: The ADX slope at 49% reflects the current recovery may reach maturity and thus a pullback is needed to carry a long-term sustained uptrend.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.