Solana (SOL) Price Faces One Last Hurdle Before Return to $30

The Solana (SOL) price increased by 180% in Jan., aided by positive news. The price is now approaching a crucial resistance level of $27.10. Firstly, on-chain activity is showing signs of a revival. This is evident in both transaction volumes and active accounts, which have spiked back to levels not seen since the FTX collapse. […]

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The Solana (SOL) price increased by 180% in Jan., aided by positive news. The price is now approaching a crucial resistance level of $27.10.

Firstly, on-chain activity is showing signs of a revival. This is evident in both transaction volumes and active accounts, which have spiked back to levels not seen since the FTX collapse.

Secondly, Solana-based Bonkz non-fungible tokens (NFTs) have increased by 1,400% over only 24 hours, further demonstrating interest in the Solana blockchain.

After increasing by 180%, the Solana price has nearly reached a crucial resistance level.

Solana Increases by 180%

The Solana price has fallen since reaching an all-time high of $259.90 in Nov. 2021. The downward movement led to a low of $8 in Dec. 2022. This was a decrease of 97% measuring from the all-time high. The decrease also caused a breakdown from the $30 horizontal support area, which is now expected to provide resistance. 

However, the SOL price completely reversed its trend in 2023. Since the low mentioned above, it increased by 185%, reaching a high of $25. If the upward movement continues, the $30 area is likely to act as resistance.

The weekly RSI is moving upward but is still below 50. Furthermore, it has not generated any bullish divergence. 

As a result of these mixed readings, the direction of the trend is still undetermined. The next closest support area is all the way down to the next support area at an average price of $4.

Solana (SOL) Price Breakdown
SOL/USDT Weekly Chart. Source: TradingView

Solana Price Prediction for Jan: Fib Resistance is Crucial

The technical analysis from the daily time frame shows that the Solana price broke out from a descending resistance line on Jan. 3. This accelerated the rate of increase toward the current high. Additionally, it supported the possibility that the Solana price prediction for Jan. will be bullish. This is also evident in the daily RSI, which increased above 50. 

However, the SOL price has nearly reached a crucial resistance at $27.10, created by the 0.618 Fib retracement resistance level. The reaction to this level often determines if the upward movement is corrective or not. 

Therefore, reclaiming it would go a long way in suggesting that the increase is the beginning of a new upward movement.

Solana (SOL) Price Breakout
SOL/USDT Daily Chart. Source: TradingView

A closer look at the technical analysis from the four-hour time frame shows that the Solana price has increased alongside an ascending support line. Currently, the line coincides with the 0.382 Fib retracement support level of the entire upward movement.

Over the past 24 hours, the SOL coin price broke down from a short-term symmetrical triangle. This occurred after the four-hour RSI generated bearish divergence (green line). 

As a result, a decrease toward the confluence of support levels near $18.50 is the most likely SOL price analysis.

On the other hand, a close above the $27.10 resistance area would mean that the upward movement would continue.

Solana (SOL) Short-Term Price
SOL/USDT Four-Hour Chart. Source: TradingView

To conclude, whether the Solana price breaks out or gets rejected from the $27.10 area could determine the future trend.

For BeInCrypto’s latest crypto market analysis, click here.

The post Solana (SOL) Price Faces One Last Hurdle Before Return to $30 appeared first on BeInCrypto.

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