- SOL has seen a massive recovery that succeeded in pushing the price of the crypto higher.
- SOL’s upward move was capped due to the presence of the 8-day Exponential Moving Average (EMA).
- If this trend continues, it could lead to the SOL price revisiting the $31.66 support floor.
After the crypto market crash in the first half of June 2022, the price of Solana (SOL) has been highly volatile. Fortunately, SOL has seen a massive recovery that succeeded in pushing the price of the crypto higher.
However, the upward momentum for SOL has reached a hurdle in its road that seems to be preventing it from moving even higher.
Between June 18 and 24, SOL saw an astounding 60% rally that set a swing high at $42.89. But, as mentioned above, this upward move was capped due to the presence of the 8-day Exponential Moving Average (EMA).
This then led to the price of SOL dropping by nearly 28% to sweep below the $31.66 support level. Bulls were successful in triggering a 28% leg-up, but once again, the price faces the 8-day EMA at $28.51.
If this trend continues, it could lead to the SOL price revisiting the $31.66 support floor. On the other hand, if SOL is able to stay above this point, there is still hope for a comeback. If SOL breaks below this point, it could lead to a 22% crash.
SOL/USDT 4-hour chart (Source: FXStreet)
Things might not look optimistic for SOL at the moment, but if the bullish momentum continues to rise, there is a very good chance that SOL could produce a four-hour candlestick close above the $38.51 and flip the 8-day EMA into a support level.
A move like this will invalidate the bearish thesis for SOL and could lead to a run-up to $47.43.
According to CoinMarketCap, SOL is currently trading at $37.29 after a 3.34% drop in price over the last day.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.