Solana Price Departed From Demand Zone: Could It Record New ATH?

• Solana price has witnessed a short-term dip of 7.85% in the past 3 days.
• SOL price has climbed by 29% since September.

Since March 2023, the Solana (SOL) price has defended a significant support level of $120. This zone works as a demand zone, and strong buying pressure is being received.

Every time, the Solana price has received buying pressure from this territory and gained around 40%. However, it has failed to smash the $200 territory, and profit booking was seen in this zone.

In September, buyers won the battle and have been riding the trend. The SOL crypto price has smashed the key moving averages and has reached the last swing high.

However, a mild selling of 7.85% was seen and dropped to the 20-day EMA. That could be a short-term pullback.

Solana Price Struggling in Parallel Channel: Is $300 Mark Loading After Breakout?

The Solana price was trading at $166.09 at press time with an intraday loss of 1.40%. The market capitalization was $78.16 Billion and ranked 5th in the cryptocurrency market. The 24-hour trading volume was $2.81 Billion.

The technical chart suggests that the SOL price has struggled in a parallel channel since March. The price faced resistance from the upper horizontal line and formed three consecutive red candlesticks.

Overall, the trend was bullish, and a breakout from the channel could be anticipated after this dip.

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If the price defends the 20-day EMA and gains bullish momentum, then a pullback can be anticipated.

Once the price surpasses the last swing high, buyers might show interest in pullback and lead the trend further. If the trading volume increases at the time of breakout, then buyers may lift the price to the $300 mark.

Alternatively, if the price drops below the 200-day EMA, it may melt into the demand zone. Most investors would prefer to book profit once the SOL crypto loses the major support level of $120. Here, profit booking may result in strong selling pressure.

Based on the technical indicators, the MACD and the Signal line stood over the Zero line. The histograms have remained green, which demonstrates the buyers’ strength.

Could SOL Price Survive the Dip?

UMBAS (@umbasxbt), a crypto analyst, believes that the SOL crypto has the potential to rebound. The price has been rising by forming higher highs and higher lows. The price has dropped to the higher low territory.

Will $SOL hold the trend again? pic.twitter.com/jKoyszBTnI

— UM₿A$ (@umbasxbt) October 31, 2024

It could attract buyers if the Solana price forms a bullish candlestick in the higher low zone. It is expected to gain 10% in less than a week.

SOL Price Prediction

The Solana price has experienced a notable dip recently. However, its price still shows potential for recovery, particularly if it can maintain support at the 20-day EMA.

The bullish trend suggested a breakout from the current parallel channel could lead to significant upward movement. This could potentially reach the $300 mark if trading volume increases.

However, the critical support level at $120 remains a key factor. A drop below this level could trigger profit booking and increased selling pressure. The positive indicators from the MACD suggest that buyer strength is currently present. That could support a return to upward momentum.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.