Solana registered notable gains in the last 24 hours. For the same reason, the altcoin is the top gainer in the top 40s.
SOL was off to a good start on July 6 as Bitcoin led market recovery. It started trading at $129 but surged after a brief decline. It soon slowly climbed, reclaiming lost levels. It attempted $150 but failed to flip it as it faced strong selling congestion around $149. Currently trading at $145, the bulls are struggling to keep the accumulated gains.
What Caused the Surge?
Solana gained a whopping 11% on Tuesday on several news reports. One such is the announcement of buybacks across several traditional stocks. Some analysts claimed the selloff was to shake off retail traders from the market. An unconfirmed report stated that the large holders or whales spent a whopping $14 billion buying back stocks the weak hands let dumped.
The action by the large players points to the easing of the fear of recession that caused the massive downtrends. Some US government agencies are aggressively fighting the impending recession with notable success. The Federal Reserve is also looking to cut rates in the coming months, adding to buyers’ confidence.
It is also worth noting that the global crypto market is recovering after almost a week of massive decline. The global cryptocurrency market cap is up by over 8% in response to this trend.
What the Chart Says
The charts also offer more insight into the reason for the most recent surge. The asset saw more than eight days of notable declines. One of the biggest happened on Friday, when it started trading at $167 but experienced massive declines, resulting in a drop to a low of $149. Although it ended the day a little above $150, it registered losses of over 8%.
The previous day’s was another event to note. SOL started the day at $138 but retraced after an insignificant attempt to surge. It dropped retest $110 but found support and started recovery, resulting in the asset erasing a large chunk of the losses. Nonetheless, it closed with losses exceeding 6%.
Due to the downtrend, the coin lost almost 30% in the last eight days. Such massive declines also had a telling effect on indicators like the relative strength index, which shows trader behavior toward buying or selling an asset.
The metric took a beating during this period and retraced to a low of 31, a few points from the cryptocurrency becoming oversold. However, SOL was oversold on the on-chain metric, resulting in the need for an end to the downtrends. The most recent hike offered the much-needed trend reversal as bullish traders resumed buying.
Solana Next Price is Uncertain
Solana lost momentum as it edged close to the $150n resistance as some traders decided to take profit. The asset is trading at $145 in reaction to this trend. While it already registered notable gains, it is essential to note that it is still prone to bearish actions, as seen a few hours ago.
Many may also interpret such a slight decline as indicative of notable indecisive actions by the bulls. Others may conclude that it is a sign of the buyers becoming exhausted. In both cases, there is a considerable chance that such a trend will continue in the next 24 hours.
Since then, RSI has been one of the first chart indicators to respond to the trend change. It surged from 31 to 41. The accumulation and distribution charts are also on the rise as trading volume spikes.
Taking this into consideration, the altcoin may see further price hikes. It may guarantee a flip of the $150 resistance. It is also worth noting that breaking the highlighted mark will result in the asset reclaiming $155, which is tough support.
