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Solana (SOL) signals a bounce back: Turning point or just a blip?
Solana – one of the altcoins that investors are particularly interested in – is sending signals indicating the possibility of a bullish reversal after a week of lackluster trading in the crypto market.
The widespread fluctuations in the market over the past week have dealt a heavy blow to investor sentiment, causing the price of SOL to fall to its lowest level in months, hitting a bottom at $140.21 on Friday. However, as the wave of recovery begins to show signs of returning, expectations for a strong rebound of Solana are also gradually being ignited, opening up hope for a new bullish phase.
Solana bulls gradually regain the initiative
On the daily timeframe, the MACD indicator of Solana is approaching a "bullish cross" – a signal often viewed by technical analysts as a positive omen for price trends. A bullish cross occurs when the blue MACD line ( crosses above the orange signal line ), reflecting a clear shift in investor sentiment towards optimism.
If this crossover is clearly established, analysts believe that the bullish trend of SOL will be reinforced, opening up the potential for significant recovery in the short term.
Reinforcing the positive outlook for Solana, the Balance of Power indicator (BoP – Balance of Buying and Selling) continues to maintain in the positive zone, indicating that buying pressure is returning to the market. As of now, BoP is recorded at 0.36 – a figure that clearly reflects the shift in investor sentiment.
! sol-tangSolana BoP Indicator | Source: TradingViewThe BoP indicator is designed to measure the relative strength between buyers and sellers, based on the price action in each trading session. When the BoP falls into the negative zone, it means that selling is gaining the upper hand and the market is trending downwards. Conversely, as is the case with Solana, a shift to the positive zone suggests that buyers are regaining control, opening up the opportunity for a rebound after a long period of corrective pressure.
Solana aims for a breakout above $157 – Will the bulls do it?
At the moment, Solana (SOL) is trading around $152.20. If buying continues to increase, the altcoin could quickly break above the key resistance zone at $157.92. Once this threshold is successfully conquered, SOL will open up the opportunity to extend the uptrend, towards the next target at $165.12.
On the contrary, if demand weakens and profit-taking pressure increases, the price of SOL risks reversing and falling back to the nearest support area around $142.59.