The Solana price failed to clear its recent downtrend. However, several supportive technicals suggest that next time around, SOL may have more success.
Solana is last trading at $33.16, down -$0.79 (-2.36%).
The recent run of good form has lifted Solana’s market cap back about $9 billion. This puts Solana as the 9th ranked cryptocurrency and ahead of ChainLink, whose market cap is $8.2 billion.
The Solana price has not just improved on general market sentiment. SOL’s potential was also given the nod in a crypto-focused Goldman Sachs report.
As recently as the 22nd of June, it appeared as though the sun was setting on 2021’s Solana rally. However, at one stage yesterday, SOL was up 78% from the $20.12 low of the 22nd. Thus, this may mark the start of a new dawn for the Solana price.
Furthermore, the surge has resulted in a drastic improvement in the technical outlook.
SOL Price prediction
The daily chart shows just how positive the recent price performance has been.
Notably, the $20.12 low of the 22nd is close enough to the lows of May 19th ($19.04) and the 18th of April ($19.72) for me to consider this a triple-bottom.
Moreover, the 24th of February high at $18.74 further validates this as a major level of support.
Additionally, another positive sign is that Solana is now above the 100, and 200-day moving averages.
Yesterday’s rally did briefly lift Sol above the 50- DMA at $34.77. However, the rally was capped by a descending trend line at $36.00.
The significant trend, in place from the $61.44 May 19th all-time high, proved too much. As a result, the price reversed its intraday gains and was subsequently forced below the 50 DMA by the close.
However, this morning, the Solana price has held the support of the 100 DMA at $31.17 and is in the process of turning higher.
Should the price clear the 50 DMA and the downtrend, I predict SOL could return to the 9th of June high at $48.50, around 48% higher than the current level.
Although, this bullish view becomes invalid if SOL closes below the 100 DMA first. This would indicate the recent rally is fading.
Solana price chart (Daily)
Follow Elliott on Twitter.