By Nathan Ferguson
Solana’s descending channel trend eventually witnessed an upside break within the past week. Buyers confirmed their presence in the current market structure following a close beyond the 20 Exponential Moving Average and the 50 Exponential Moving Average.
The latest reversals from the 61.8% FIB zone might witness a bounce back from the short-term Exponential Moving Averages. A decline beneath the 50EMA might decline the potential revival projections. While publishing this post, Solana changed hands at $41,9175 after encountering retracements within the past 24 hours.
Solana Daily Timeframe
Solana’s long-term downward channel dragged SOL lower towards the baseline at $28 until mid-June. Meanwhile, southbound trends have halted short-term buying rallies. The 61.8% FIB retracement has restricted the token’s rallies within the past two months. Though bulls regained their strength following the latest breakout, the golden FIB level has prohibited buying efforts.
For now, the price action consolidates around the 50 Exponential Moving Average. A rebound from this mark would print a bullish hammer on the daily chart. Such a development would see potential targets within the $46-$47 territory. Buyers’ failure to inflict massive rallies might only support sellers in stretching the sluggish phase.
Reasoning
The past few days saw the Relative Strength Index securing a solid position above the midline resistance. A decisive closing beyond the 60-level would confirm the buying dedication in the upcoming days. Also, the Chaikin Money Flow blended with the upside narrative following a takeoff from support at 0.06. These indications can bolster buyers to keep the 50 Exponential Moving Average support. Surprisingly, the Moving Average Convergence eventually secured a spot beyond the zero level. Sustaining beyond this area would show a gradual momentum shift in buyers’ favor.
Final Thought
Considering the bullish break past the pattern plus the northbound 20 Exponential Moving Average, Solana might witness a bounce-back rally while staring at hurdles near the $46.5 mark. Take profit level, and triggers would stay as highlighted above. Nevertheless, investors should watch Bitcoin and broad market sentiments as they can alter SOL’s trends.