Solana (SOL) – Bulls seeking control

Solana (SOL) – Bulls seeking control

Posted on Monday, November 22 2021 at 9:13 pm GMT+0000

Solana (SOL) has managed to find a foothold around the 50% Fibonacci retracement level of the last 116-260 impulsive wave, and well distanced itself from the 55-day exponential moving average.

In technical indicators, the positively aligned 21- and 55-day exponential moving averages, are safeguarding the current bullish structure. While the last bounce itself can be considered as an encouraging sign that buyers are seeking to control the market.

As regards the price momentum, the recent slowdown in both the RSI and stochastic oscillators is mirroring Monday’s pause of upside forces. So, to take the helmet, bulls will probably need to clear the Sunday high of 235.58. By successfully doing so, they may push for a retest of the 260 all-time high. Next focus will shift towards the 300-305 region, with the latter being the 161.8% Fibonacci extension of the last 260-186 downfall.

Should sellers come into play, claiming the 186 level, they may face a congested zone of downside deterrents between the October 3rd high of 177.93 and the 169 level, encompassing the 61.8% Fibonacci level. A bit lower, the 78.6% Fibonacci level at 146.81 could try to block the way towards a retest of the 116 bottom.

In brief, Solana is expected to resume its upside trajectory after a break of the 235.58 level. However, an immediate drop below the 186 mark could trigger steeper declines.