Popular altcoin Solana is gearing up for a potential price reversal following a subdued week in the crypto market.
Last week’s sideways trading across the broader market dampened investor confidence, dragging SOL to a multi-month low of $140.21 on Friday. However, the renewed bullish momentum in the market suggests the price might be poised for a rebound.
Solana Bulls Gradually Regain Control
On the daily chart, SOL’s Moving Average Convergence Divergence (MACD) is on the verge of forming a golden cross, indicating a shift in market sentiment toward the upside. A golden cross emerges when an asset’s MACD line (blue) crosses above the signal line (orange), a setup widely regarded as a bullish momentum signal.
SOL MACD. Source: TradingView
The MACD indicator identifies an asset’s trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line is above the signal line and a golden cross is formed, it confirms the bullish momentum in the market and suggests that the SOL’s price may continue to rise.
Adding to this bullish outlook, SOL’s Balance of Power (BoP) indicator is positive, reflecting a resurgence in buy-side strength. At press time, this is at 0.36.
SOL BoP. Source: TradingView
The BOP indicator measures the strength of buyers versus sellers by comparing the price action within a trading session. When BOP is negative, it suggests that sellers are dominating the market, indicating bearish sentiment and downward price pressure.
Converesly, as with SOL, when the indicator’s value is positive, buyers are dominating the market. The increased demand suggests that bulls are regaining control after several days of downward pressure.
Solana Eyes Breakout Above $157—Will Bulls Deliver?
At press time, SOL trades at $152.20. If buying pressure continues to build, the altcoin could break above the immediate resistance at $157.92. A successful breach of this level may pave the way for a rally toward $165.12.
SOL Price Analysis. Source: TradingView
However, if demand weakens and profit-taking resumes, the Solana coin price risks resuming its downward trajectory, falling to support around $142.59.
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