The News Crypto -
- SOL nearly breaches $126 support but shows signs of recovery.
- Chaikin Money Flow (CMF) indicates increasing buying pressure.
- Price targets: potential rise to $155 and $160, or drop to $126 if $137 resistance holds.
Solana (SOL) finds itself at a critical juncture after narrowly avoiding a breach of its crucial $126 support level, a price point that has safeguarded the cryptocurrency from major downturns since early March. As the digital asset shows signs of recovery, investors are keenly observing technical indicators for clues about a potential price rally.
The Chaikin Money Flow (CMF) indicator, a key metric for gauging capital inflows and outflows, has recently displayed a notable uptick for Solana. This positive movement suggests consistent buying pressure, potentially foreshadowing a price surge.
However, the persistence of negative netflows tempers this optimism, indicating ongoing capital outflows that could constrain the strength of any upward momentum.
For a sustained rally to materialize, market participants are watching for the CMF to cross above the zero line, a move that would signal a shift to positive netflows and bolster confidence in Solana’s price recovery.
This transition could serve as a catalyst for increased buying activity and potentially trigger a more substantial price appreciation.
Source: TradingView
Solana’s MACD forms double bottom divergence pattern
On a macro level, Solana’s Moving Average Convergence Divergence (MACD) is forming a double-bottom divergence pattern, a technical formation often interpreted as a harbinger of trend reversal.
This configuration suggests waning bearish momentum and the gradual ascendancy of bullish sentiment, offering long-term holders and traders cause for optimism.
Solana’s recent price action has been characterized by oscillations between $186 and $126, with current short-term consolidation occurring below the $160 threshold. Trading at $135, SOL is testing local resistance at $137, a level it must surmount to maintain upward trajectory.
Given the supportive technical indicators, a breakthrough above this resistance seems plausible, potentially paving the way for advances towards $155 and the critical $160 level.
This article was originally published on thenewscrypto.com
