Solana's (SOL) price almost breached its critical support level of $126. However, the cryptocurrency is now showing signs of recovery. Investors are interested to see if SOL is on the verge of a price rally, as technical indicators hint at potential upward movement.
The Chaikin Money Flow (CMF) indicator, tracking capital inflow and outflow, shows a notable uptick for Solana. This indicates consistent buying pressure, possibly preceding a price rally. Although netflows remain negative, a crossing of the CMF above the zero line would signal positive netflows, bolstering confidence in Solana's recovery.
Solana's Moving Average Convergence Divergence (MACD) also forms a double-bottom divergence pattern, suggesting a potential reversal in market sentiment. This pattern implies weakening bearish momentum and growing bullishness, hinting at a possible price rise for SOL. The recent uptrend and technical signals provide an optimistic outlook for long-term holders and traders.
In recent weeks, Solana's price fluctuated between $186 and $126, consolidating around the $160 level and currently at $134. To maintain upward momentum, SOL needs to break through the $137 resistance level. If successful, Solana's next targets are $155 and $160. Surpassing $160 could pave the way for further gains.
Failing to break above $137 could lead Solana to fall back to its previous support at $126, invalidating the bullish outlook and possibly leading to prolonged consolidation within a tighter range.
