The SOL price began the week on a positive tone. The price extended the previous week’s gains, with a weekly gain of 24 percent. After a lower opening, SOL swiftly recovered to tag the session at higher levels not seen since February.
As the new trading week begins, the SOL price moves higher.
Expect additional gains to $130.0, which is above the 200-EMA.
The momentum oscillators have shifted in favour of bulls.
SOL/USD is now trading at $111.34, up 3.92 percent on the day. According to CoinMarketCap, the eighth-largest cryptocurrency by market capitalization has a 24-hour trading volume of $2,481,911,734.
SOL price continues to rise
On the daily chart, SOL is attempting to break through the crucial 200-EMA (Exponential Moving Average) level of $113.87. The asset’s continuous buying trend has kept the gains since March 14 intact.
Over the course of a month, SOL formed a ‘Rounded bottom’ structure. The rounded bottom pattern is a bullish reversal pattern that created following an asset’s long-term downside movement.
Now, a daily close above the mentioned moving average will meet the upside target at $130.0.
On the other hand, a surge in sell orders or a reversal in bullish sentiment might put downward pressure on SOL’s price. A move toward the 50-day EMA, which served as immediate downside support around $98.0, cannot be ruled out in that situation.
Additionally, a break below the aforementioned level might exacerbate the selling, with bears aiming for $80.0.
SOL’s price has fallen nearly 70% from its record high of $260. After falling further in late January, the price contained the negative risk and consolidated.
RSI: On March 15, the daily Relative Strength Index spiked above the average line and has since continued to trade higher. It is currently reading 68.
MACD: Moving Average Convergence Divergence Divergence maintains a bullish tilt above the midline.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.