In the top 10 list of the most valuable cryptocurrencies, Solana (SOL) had the best 24-hour performance. According to CoinMarketCap, the Ethereum-killer posted a daily gain of 3.94% to reach a value of $18.82 at the time of publication. This surpasses Ethereum (ETH), which came in second place but only saw a 1.71% value increase within the same time period.
The collapsed FTX recently received authorisation to sell its cryptocurrency holdings, which included a sizeable quantity of SOL, underscoring the altcoin’s astounding value performance. Buyers and merchants understood SOL’s value as a buying option that was too good to go down, regardless of the potential selloff.
Technically speaking, SOL’s value was put to a significant test on Tuesday when it attempted to break through the crucial support level at $17. But bullish buyers successfully held this level, which led to a spike in buying activity.
As a result, the altcoin’s value recovered from the support level and began an upward trend that continued over the next few days. Additionally, technical indicators hinted at the possibility of this upward momentum continuing over the ensuing 24-48 hours at the time of publication.
The daily Relative Energy Index (RSI) crossed above its Simple Moving Average (SMA) over the past 48 hours, creating a glaring bullish technical indication. This signal indicates that the bullish attitude is in control.
On SOL’s daily chart, a further significant bullish technical flag was also about to activate. At the time of publication, the MACD Sign line was attempting to cross above the Transferring Common Convergence Divergence (MACD) line. If these two traces cross, it will signal a bullish turn in SOL’s trajectory.
Despite these positive signs, there is still a negative trend line that SOL’s value needs to break over before traders and investors can securely consider taking long positions in the cryptocurrency. On the daily chart of SOL, this downward trend line has been developing over the last few weeks, a period in which the price consistently hit lower highs.
The 100-day Exponential Transferring Common (EMA) line, which is currently located around $21.13, lines up with this development line, which is noteworthy. Consequently, for SOL’s value to break out of the medium-term downtrend, a daily candle needs close above this particular technical signal.
Achieving this might pave the way for an attempt to turn the $25 resistance level into assistance in the coming days. The value of the cryptocurrency will then have a clear route to rise to the next milestone at $35.
However, there is a chance of returning to the previously mentioned $17 support level in a different scenario where SOL‘s value finds resistance from the 100-day EMA line in the upcoming week and fails to secure a daily candle closing above it. If there is continued pressure on sales, SOL’s value might go below this crucial threshold and possibly as low as $12.75.