The Solana price is notably softer this morning and lower by around 4.5%. However, SOL is parked on two important indicators which could derail the rally.
The Solana price is currently $35.05, down $1.70 in early Thursday trading.
Despite today’s weaker start, SOL has advanced over 5% in the last seven days. Solana currently resides at 12th place on the CoinMarketCap table of cryptocurrencies, with a $9.7 billion market cap.
SOL has performed better than most following the June 22nd sell-off. Basis yesterday’s $38.67 high, the coin had almost doubled in 16 days.
The rally had lifted SOL far clear of the 200-day moving average at $21.87, responsible for reversing June’s declines. Furthermore, the upward acceleration also left the 50 and 100 DMA’s at $34.69 and $35.44 in the rearview mirror.
Although this morning, the Solana price is flirting with the two shorter period averages.
The daily chart is fairly encouraging for the bulls. However, there are indications the price may pull back in the near term.
If SOL advances beyond $35.44 in today’s trading, the outlook becomes extremely favourable. In that event, the Solana price can extend around 40% higher to the 9th of June, $48.51 high.
However, a failure to close above the 50 and 100-day averages leaves SOL vulnerable to a reversal that targets $25.00 and around 30% beneath the last trade.
Therefore, today could be viewed as pivotal. On the one hand, a positive close sets SOL up for further gains. On the other hand, a red candle today keeps the gains away.
On that basis, a Solana price prediction carries more weight tomorrow.
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