Solana Analysis: SOL is Gearing For a Return to $140 Following Bullish MACD Convergence

Over the last seven days, Solana has seen a rollercoaster of price ranges. Many traders were left shocked at the fact that it did not surge with Bitcoin and Ethereum. Additionally during the previous week, it struggled to hold prices above key support. While this trend is changing, it is important to examine how it performed to understand the critical levels to watch in the coming days.

A look at the 1-day chart clearly shows that the previous week was the most bearish for the asset under consideration as it lost notable value. The first five days of the period were some of the most negative as there were no positive candles during this time.

The decline started on Monday after its failed attempt at surging. This comes after it faced strong rejections at $114. During the next intraday session, it edged close to a retest of $100 but rebounded. The test finally came on Wednesday when SOL found support at the mark. Nonetheless, it broke the said mark on Friday as it dropped to a low of $98. The last two days of the week were more positive as the asset recovered during this period.

In the end, the coin closed the week with losses of more than 8%. This is the first time in more than four weeks the altcoin is seeing this significant loss. The downtrend comes as a surprise to many as there are developments in SOL ecosystem that many expect will translate to price increases.

For example, last week’s report had it that solana-based non-fungible tokens (NFTs) witnessed a remarkable rise. It recorded over $5 billion in all-time sales volume which represents a significant shift in Solana’s digital art ecosystem.

Solana had a Bullish Convergence

Aside from some positive improvements in the coin’s ecosystem, there are also improvements on the charts. Due to the previous week’s losses, it had a bearish divergence on the second day. This also explains the reason for the notable drop in value during that period.

Following a shift in market trajectory, the asset saw the Moving Average Convergence Divergence gradually display a bullish signal with the 12-day EMA halting its downtrend and seeing a reversal. This trend continues into the current intraday session as it is in contact with the 26-day EMA.

With positive convergence in full effect, it is easy to conclude that the altcoin is set to see more price increases. Let’s look at the key levels to watch during the coming days.

SOL to Flip $140

SOL first major obstacle is the $120 resistance. It is worth noting that the barrier has held out over the last two months with two failed attempts. The asset under consideration may break it within the next 48 hours. If that happens, the next mark is the $130 resistance. This will mark the first time since April 2022 it is attempting this mark. Nonetheless, $140 remains the top mark as far as this week is concerned.

On the other hand, the $118 barrier remains a likely support once solana breaks $120. It is also noting that other Relative Strength Index is showing a healthy amount of buys at this time.