The cryptocurrency market is showing renewed vigor as it rebounds from recent setbacks, buoyed by optimistic expectations for positive CPI data due on September 11. This resurgence has already led to significant market movements, including $127 million in liquidations and the erasure of $93 million in short positions. Amid this recovery, Bitcoin has reclaimed the $58,000 threshold and is currently trading at $56,631, up 2.89% in the past 24 hours. With Bitcoin’s rise, altcoins are gaining traction, and Solana (SOL) is among the top performers, recording a notable 3.58% increase to a current trading price of $132.
Solana’s Bullish Reversal – From $120 To Potential Breakout
Recent price action for Solana reveals a promising bullish reversal. After bouncing off the $120 support level, SOL has shown a steady increase, with a 2.16% and 1.89% rise over the weekend followed by a 3.81% jump on Monday. However, despite this upward momentum, Solana’s price has struggled to breach the 20-day EMA, leading to a minor 1.20% pullback as the market faces bullish exhaustion. The current daily chart shows a bearish intraday candle in relation to the 20-day EMA.
The crucial daily EMAs are showing signs of a potential bearish crossover, with the 50-day EMA nearing a death cross with the 200-day EMA. Nonetheless, the MACD indicator is showing a bullish crossover possibility, suggesting a potential shift in momentum.
Rounding-Bottom Reversal Signals a Bullish Trend
In the 4-hour chart, Solana’s price action is forming a rounding-bottom reversal pattern from the 23.60% Fibonacci level. This pattern, combined with dominance over the 20 and 50 EMAs, suggests a recovery rally that is testing the 100 EMA. However, an evening star pattern has temporarily halted this uptrend, delaying a potential positive crossover between the 20 and 50 EMAs. If the rounding-bottom trend continues, a bullish breakout above the 38.20% Fibonacci level at $141 could lead Solana to challenge the neckline at the 61.80% Fibonacci level around $160.
Recent whale activity adds another layer of complexity to Solana’s outlook. One prominent whale acquired 34,807 SOL tokens worth $4.52 million earlier today and has since moved approximately 207,000 SOL tokens into self-custody. This whale’s purchase comes at an average price of $142, and the tokens have been staked, indicating a long-term bullish stance.
Conversely, another whale has been actively selling Solana tokens, offloading 20,000 SOL worth $2.66 million today alone. This whale has sold a total of 715,000 SOL tokens this year, valued at $102 million, while maintaining a balance of 1.8 million SOL tokens staked, worth $246 million.
Key Levels to Watch
Solana’s price action currently faces a critical juncture. A bullish breakout above the 23.60% Fibonacci level at $137 could set the stage for a surge toward the psychological $150 mark, aligning with the 38.20% Fibonacci level. Conversely, if the bearish trend resumes, the $120 support level may come under test once again.
As the market adjusts and key indicators align, Solana stands at a pivotal moment. Will SOL continue its upward trajectory and surpass $150, or will it face further resistance? Investors and analysts will be closely watching these crucial levels to gauge the next move for Solana.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
