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Solana (SOL) Aims for Rebound After Steep Correction, Key Levels to Watch

Solana Co-founder Advocates ORE Fork for Network Stress Testing

  • Solana (SOL) has experienced significant volatility, dropping from $210 to around $116 recently.
  • Despite this correction, SOL’s decline has been relatively moderate, down by over 43% this month.
  • To sustain an uptrend, SOL needs to maintain support above the golden ratio level at around $85.

The cryptocurrency market has been a rollercoaster ride, and Solana (SOL) has found itself caught in the crosshairs of this volatility.

After a significant correction from approximately $210 to around $116 over recent weeks, the digital asset now presents potential for an upswing.

Despite the recent slump, the correction in SOL’s price has been relatively moderate thus far, with the price dropping by over 43% during the course of this month.

Consequently, the histogram of the Moving Average Convergence/Divergence (MACD) indicator has also begun to trend lower in a bearish direction this month. 

Can Solana sustain uptrend?

Notably, the bullish upward trend remains sustained as long as Solana maintains support above the golden ratio level, which is approximately $85.

One of the critical levels to watch is the significant Fibonacci support range between $125 and $130 for the SOL price. Maintaining a foothold above this range would signal strong bullish sentiment and potentially pave the way for a rebound. Alternatively, the 50-week Exponential Moving Average (EMA) at approximately $85 stands as an additional support level to monitor.

While the weekly chart indicators portray a bearish outlook, with the MACD histogram trending downward and the MACD lines nearing a bearish crossover, the RSI remains in neutral territory, leaving room for potential upside momentum.

Adding to the bearish sentiment, a death cross has recently formed on Solana’s 4-hour chart, confirming a short-term bearish trend and indicating a potential downward movement toward the Golden Ratio support zone between $125 and $130. Despite this, the MACD lines remain bullish, and the RSI hovers in neutral territory, albeit with the MACD histogram starting to show bearish momentum with a downward tick.

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