Is It A Good Time To Buy Solana (SOL)? Detailed SOL Price Analysis With Entry Levels & Stop Loss

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Under the influence of a resistance trendline, the Solana coin price has witnessed an established downtrend for the past ten months. However, amid the U.S. bank crisis, the crypto market has gained more spotlight, triggering a recovery phase in the majority of major cryptocurrencies. Thus, the SOL price is likely to breach the overhead trendline which will be an early sign of trend reversal.

Key Points

A descending trendline governs the ongoing downtrend in the Solana coin price
Supply pressure at the overhead resistance trendline threatens the SOL price of a new correction.
The 24-hour trading volume in the Solana coin is $486.2 Million, indicating a 40% loss.

Source-Tradingview

Maintaining an overall downtrend since last year, SOL prices reached the bottom of $9 by the end of 2022. However, with the new year’s recovery in the crypto market, the SOL price witnessed a significant rally and pushed the market value 140% higher.

Analyzing the declining trend, the recovering SOL prices are struggling to surpass a long-coming resistance trendline. The multiple reversals from the dynamic resistance reflect a long-term struggle where buyers are constantly failing to regain trend control.

As per the Fibonacci retracement, despite the recent correction from combined resistance of $25 and resistance trendline, the buyers propel the prices higher by retaining control at the 23.60% level at $17.

Currently, the Solana price trades at $21.80, with an intraday gain of 2.59%. However, with the altcoin close to the 38.20% Fibonacci level and the resistance trendline, the recovery will soon face bearish opposition.

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Nonetheless, the growing bullish sentiment in 2023 shows a growing possibility of a bull run shortly. Hence, traders can find an entry opportunity with the breakout resistance trendline close to the $23 mark. Bolstering the entry for buyers, the breakout of 38.20% Fibonacci level will improve the sentiment.

On the opposite end, in case of a prolonged correction or a failed breakout, a drop below the $20 mark will nullify the bullish hypothesis. Hence, short-term buyers must keep a stop loss at $20.

Technical Indicator

RSI: the recovering RSI slope in the daily chart projects an inclining trend bouncing from the oversold boundary higher above the halfway line. Thus, highlighting a higher possibility of a prolonged recovery shortly.

EMAs: A bearish gap between the 50-and-200-day EMAs is decreasing as the coin price witnessed a significant recovery so far in the year 2023. A potential golden crossover between these EMAs will accelerate the buying pressure in the market.