SOLANA PRICE ANALYSIS & PREDICTION (February 16) – SOL Looks Bullish But May Reverse Trend If This Bearish Divergence Plays Out

  • February 16, 2024

After remaining calm through last weekend, Solana SOL advanced higher this week as it recorded a total gain of 40% in the past 22 days of recovery. It looks bullish and now aims to reclaim its two-month high

Sol has continued to show signs of strength as it passed through several resistance levels, which have now turned supports since it bounced back in late January. 

So far, it has recovered well as the price almost reached its recent local peak again. A successful break through the local peak should set the asset for a long-term bullish rally. Rejecting it could lead to a drop. 

But the thing to worry about here is the continuous decline in the daily volume indicator, which suggests that volume(money) is still flowing out of the market while the price increases. This signals a disagreement in the price and volume – a potential bearish divergence in play.

If money continues to flow out of this trade, Sol is likely to reverse the trend with a double-top. That could lead to a big crash if such a scenario comes into play. Right now, things are still looking more positive.

Technically, Sol remains bullish on the daily chart with no sign of slowing down gains at the time of writing.

SOL Key Level To Watch

Source: Tradingview

The price is almost testing an hourly resistance level of $116.9. If this resistance flips, the $126.3 level would be the next resistance to watch for a potential breakout. Above it lies the $140 level.

Sol is currently trading above the $107.5 support level. A drop below this support could bring a retest to the psychological $100 support level. Below it lies the $90 and $80 supports.

Key Resistance Levels: $116.9, $126.3, $140

Key Support Levels: $107.5, $100, $90

  • Spot Price: $114
  • Trend: Bullish
  • Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/solana-price-analysis-prediction-february-16-sol-looks-bullish-but-may-reverse-trend-if-this-bearish-divergence-plays-out/

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