The Solana (SOL) price appears to be reversing the adverse pressure that has kept it depressed for so long. The recent increase in buying pressure has caused SOL to produce a higher high on the three-day chart, indicating a momentum shift in favour of the bulls.
The price of Solana approaches a volatile level.
Solana (SOL) price is $21.2 after a three-day candlestick close decisively above the 13-day, 25-day, and 30-day Exponential Moving Averages (EMA) in the $20 region. This move has also produced a higher high compared to the swing high of $20.54 from September 19.
Despite the fact that the Solana price action is favourable, the momentum ndicators—the Relative Strength Index (RSI) and Awesome Oscillator (AO)—are also exhibiting signs of improvement. On the three-day chart, the RSI has shifted above the 50-mean level, indicating that bullish strength is on the rise. The AO, however, remains below the zero-mean level, lagging behind the RSI. Traders must keep a close watch on this index, as a break above zero could trigger a volatile upward movement in SOL.
The first target for SOL traders is the $25.8 level, which is roughly 22% away from the current level and is a suitable trader for short-term investors. But from a longer-term perspective, the $25.8 barrier is crucial; a conversion of this barrier into a support floor on the three-day chart could spark a 43% surge in Solana price to $37.1. This move would represent a 76% increase over the existing level.
Despite the fact that the optimistic outlook for Solana is rational given the recent price action and momentum indicators, investors should be cautious. An abrupt increase in selling pressure that causes SOL to produce a three-day candlestick close below $17.5 will produce a lower low and invalidate the bullish thesis.
In such a scenario, the price of Solana could drop by nearly 15% and retest the $14.9 support level.
