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- SOL broke the $30 resistance, thanks to an increase in buying pressure after a previous rejection at the region.
- SOL needs the $23.38 support to avoid a drawdown below $28 in case of a likely sell pressure.
- Should SOL reverse, an entry between $26 to $28 might be good for the run to $35.
Solana (SOL) broke the $30 psychological resistance as the price increased by 4.45% in the last 24 hours. The breakthrough stamped SOL’s stay as the cryptocurrency with the highest gain in the previous seven days out of the top 10 assets per market cap..
Previously, precisely on October 22, SOL interacted with the $30 price level. But the price action met a solid resistance. This resulted in a pullback to $28.10. However, the last 24 hours have been superb for SOL as shown on the daily timeframe.
Sell-offs Are Likely
According to the SOL/USD daily chart, bulls increased buying pressure, helping the token to ease past the resistance into $31.47. While there has been a slight reversal, it is important to watch the $23.38 support level.
Due to the performance SOL has had lately, it is possible for selling pressure to increase. But if the $23.38 support holds, then bears may not be able to drag the price lower than $28. Also, there is also a chance that SOL will hit $35 should the bullish momentum continue.
One indicator to watch out for is the Exponential Moving Average (EMA). As of this writing, the 20 EMA (blue) had crossed over the 50 EMA (yellow). Basically, this is a move signaling an upward turn in the market.
If the SOL price action does not drop below $28, then the bullish narrative may continue to fly, and $35 may be the token’s first stop.
SOL/USD Daily Chart (Source: TradingView)
Possible Entries If Bullish Momentum Stays
While the bullish trajectory still remains very present, traders may need to watch out for a new entry possibly lower than $30. This is because the Relative Strength Index (RSI) deemed SOL overbought since the indicator was 80.44.
Typically, when the RSI hits 30.00 or lower, it means the asset is oversold. In this instance, there is a high reversal chance in the upward direction. But on the other hand, the RSI closing above 70.00 means the asset is oversold and a drawdown is likely. Hence, SOL may experience another pullback.
This sentiment was also validated by the Money Flow Index (MFI). Unlike the RSI, the MFI shows an overbought condition when it is above 80.37. At press time, SOL’s MFI was 89.90. So, it may be time to sell SOL.
SOL/USD Daily Chart (Source: TradingView)
At the same time, the possible sell-offs may not entirely negate the bullish momentum currently experienced. Therefore, it may be a good idea to watch out for the $26 to $28 level as entry points as SOL stands a good chance of hitting $35.
The post SOL Breaks $30 Resistance, Eyes $35 Price Target appeared first on Coin Edition.