Solana Price Prediction: SOL Price Has Been in Bulls Hands, Holding Above Key Resistance Turning Them Into Support

The Solana price has been in bulls' hands over the past few weeks, holding above key long-term resistance, turning them into support levels.

The Solana price has been in bulls hands over the past few weeks, holding over key long term resistance, turning them into supports levels.

This cryptocurrency broke out from a descending price channel in April, and is now consolidating around a tight range. This consolidation suggests support at major levels,  indicating a signal for a bigger move.

The technical structure of Solana seems promising as the price trades with exponential moving averages (EMAs) as dynamic support below the price. Based on the current trend, Solana could soon begin breaking higher. This will possibly mark the impending next leg to the upside for the coin.

Solana Price Key Support Holding Above Former Highs

Looking at 4-hour charts, it’s evident that the Solana price has a solid support situated at a level, which was formerly a defining resistance.

Solana’s price was consolidating above a critical support zone at $144.97 and around $148.

In mid April, this area had been the resistance zone, and in flip it is now providing stability to the price action. This is healthy price structure.

Resistance turning into support usually means strength and it adds to confidence in bulls.

Above this resistance-turned-support area the consolidation means that Solana is currently in a healthy correction. It also could mean a consolidation phase signaling a potential upward trend.

Handily, Solana price has held up well above a long line of increasing highs on the 4 hour chart as well. It quickly rebounded to the above $112, then, after a sharp drop to around $112 in the early April.

Then it surged through resistance levels. It has since set into this narrow consolidation band and there is potential for a breakout or further consolidation based on the hold of the support at $145.

EMAs Confirm Bullish Market Structure for the Solana Price

The current price behaviour of Solana is bullish because the exponential moving averages (EMA) are now aligned below the price. EMAs on the 4 hours chart are all formed tightly under the current price and moving upward.

The fact that these EMAs are clustered together suggests there is a lot of support forming under price, adding weight to the bullish structure.

Trending markets will act as dynamic support levels for EMAs, and when they converge they will often be a good indication that the underlying trend is in effect.

In this case, the 20, 50, and 100 period EMAs are apparently pretty close together, which could relate to market participants buying all the time near these levels.

From the perspective of price, Solana’s price has not been knocked out of its upward momentum by the price kicks below the EMAs.

Breakout From Channel Validates Trend Shift

Solana price has been able to break out of a long term descending price channel on the daily chart of the currency. The price struggled to make enough headway above the upper boundary of the channel.

The price action was taking place in a downtrend forming a series of lower highs.

But at the start of April, Solana decisively broke up through this downward sloping channel. This dropped a hint at market sentiment moving from bearish to bullish.

This breakout was strong and came with increased volume, which indicates the buyers took back control of the market. When this signal broke above the channel resistance, the downtrend was over and the uptrend was born.

Since its breakout, Solana has been trending upwards and has been forming higher lows and higher highs which is a bullish sign of an uptrend.

Once the breakout happened, Solana’s price tested the previous resistance levels, and are now above $145.

This validates the shift from the bear market to the bullish one. With the price now pausing and building strength, the current consolidation is a natural part of the trend continuation.

Although SOL looks to be bullish as price action and EMAs indicate, we have modes moving towards neutral from momentum. The current stochastic RSI on the daily chart is currently at 59.77.

The current reading therefore tells us that Solana price has some room to carry forward its momentum. However, the southern trajectory could mean the momentum could be waning.

The volume oscillator is revealing a negative reading of -30.52%, which means that volume was lower than its moving average.

Equally typically, this volume decrease goes along with consolidation or correction phases.

Although low volume at consolidation does not necessarily bearish, it does indicate the market is waiting for fresh buying interest to push the price higher.