Solana (SOL) – Has good potential to make further progress in the short term

Solana (SOL) – Has good potential to make further progress in the short term

Solana (SOL), the public blockchain platform with smart contract functionality, bounced forcefully near the upper-line of the regression channel stretched from the 7^th of February high and barely conquered the previous intraday resistance.

The short-term oscillators convey a picture where positive momentum is gaining strength. The MACD jumped above its signal line a tad above zero, while the DI+ of the ADX indicator is distancing itself above the DI- line. One other optimistic sign is the bullish intersection between the 20 and 40-period moving averages which is promoting further bullish developments.

Following the recent break above the 95.26 previous intraday high, buyers are expected to keep pushing higher to meet the 161.8% Fibonacci extension level at 102.21. By overstepping this barrier, and the neighboring February 15^th high at 105.82 they will aim for the 261.8% Fibonacci level at 113.39.

Alternatively, if sellers re-emerge and reclaim the upper hand, by slicing through the 20 and 40-period moving averages they will call for a fresh test of the last intraday low at 84.15. Any violation at this point will bring the broad downtrend back into play, and shift focus towards the middle line of the channel and the 75.00 February 24^th bottom.

All in all, Solana has good potential to make further progress in the short term unless the price dips below 84.15.