Cryptocurrency analysts of Coinidol.com report, the price of Solana (SOL) has returned to a bullish trend after breaking above the overhead resistance at $26. The cryptocurrency rose to a high of $32.50 before falling back.
This is the first time since January 20 that the overhead barrier at $26 was broken and the upward momentum was maintained. If the upward momentum continues, Solana will reach a high of $50.
However, further gains in cryptocurrencies are unlikely as the market is approaching the overbought zone. In the meantime, the current rise is expected to face resistance near the $32 or $34 high.
Solana has reached the overbought region of the Relative Strength Index at 84 for the 14 period. If sellers emerge in the overbought region, the altcoin could crash.
As the price bars remain above the moving average lines, the cryptocurrency is gaining value. The bullish momentum of the crypto asset is above the 50 level of the daily stochastic.
Key supply zones: $20, $25, $30
Key demand zones: $10, $5, $1
Solana has broken above the $26 overhead resistance, suggesting that the cryptocurrency could continue to rise. If the positive momentum continues, Solana will reach a high of $50, according to the price indicator. However, the overbought condition of the cryptocurrency is a limiting factor.
On July 8, 2023, Coindidol.com reported that the upward movement of Solana was limited to a high of $22. Since June 4, buyers have been unable to keep the price above the $22 barrier. However, if Solana meets rejection at the recent high, the altcoin will fall below the moving average lines.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their own research before investing in funds.