Solana price returned to the upside on Wednesday, climbing by 2.2 percent to trade at $176.83 at the time of writing. The crypto asset is recovering after starting the week on a weak footing, registering a successive two-day slump for the first time in 20 days. SOL’s gains in the last week stood at 8.8 percent as of this writing- the highest among the top 10 crypto assets. Furthermore, the wider crypto market has declined this week, with the market cap down by 0.7 percent.
The momentum on the SOLUSD is signals control by the buyers, and a strong fightback by the bears. First, the 7-SMA is just about to cross below the 30-SMA on the 4-hour chart. Such a crossover has not happened in the last 12 days, and it could strengthen support for the downside if it happens. Meanwhile, the MACD shows that the buying momentum has weakened, with the indicator line above the signal line.
However, the Relative Strength Index (RSI) is at 58, signaling that the buyers still have the upper hand. The Bollinger Bands indicator aligns with this view, as the price has moved marginally above the middle line. A continuation of that trajectory will strengthen the upside view, with a full bar crossover above the indicator line likely to confirm a daily gain.
Notably, the lower Bollinger Band currently aligns with the $170 psychological support level, and a break below that mark on the 4-hour chart will be a sell signal.
The momentum on SOLUSD shows that the buyers will likely be in control above the $176.50 pivot mark. That could see the upward momentum encounter the first barrier at $179.50, beyond which the pair could strike $184.30. However, a move below 176.50 will favour the sellers to take control, with the first support likely to be at $175.40. Extended control by the sellers will break the support, potentially invalidating the upside narrative and leading to further declines to $170.00.
This post was last modified on %s = human-readable time difference 13:08