Solana (SOL) – Aiming for a positive medium-term outlook upgrade

Solana (SOL) – Aiming for a positive medium-term outlook upgrade

Posted on Sunday, March 27 2022 at 8:27 pm GMT+0000

Solana (SOL) has been creeping higher over the last couple of weeks following the rebound near the February bottom and managed to decisively overstep the 20- and 50-day simple moving averages.

The price is currently approaching the March 2nd high aiming for a positive outlook upgrade. Moreover, the ascending 20-day simple moving average is closing the gap with the 50-day moving average, where a potential crossover could endorse the case of a broader rally.

Oscillators are also conveying a picture where positive momentum is gaining strength. The MACD keeps distancing itself above its signal and zero lines, and the TSI is climbing past its moving average having recently nudged to the positive region.

Despite all these encouraging signs, traders should wisely wait for a decisive close above the March 2nd high at 106.48 before raising exposure in the market. Such a move will trigger a fresh bullish round-up to the 161.8% Fibonacci extension of the last down-leg at 124.25 overlapping with the February 7th high. Higher, the rally will likely get extra legs towards the 261.8% Fibonacci level at 153.01.

However, should the aforementioned nearby resistance manage to curb advances, initial support may develop in the vicinity of the simple moving averages around 89.00. Below these averages, the spotlight will turn towards the most recent low at 77.72. Piercing below this key barricade, the price may then plunge towards May 17th high at 58.92.

To summarize, although technical signals are currently leaning to further progress on the coming sessions, only a sustainable move beyond 106.48 will confirm additional meaningful bullish developments.