NEW DELHI (CoinChapter.com) — Solana (SOL) price have been swimming upstream against the wider crypto market trend. SOL has jumped 41.2% between June 14’s low ($25.8) and June 20’s intraday high of $36.4.
The long lower wicks on SOL’s daily candles indicate bulls are aggressively buying the dips. SOL started the day in the red before strong buying pressure propped its prices, with SOL jumping nearly 16% between intraday low ($31.7) and high ($36.7) levels.
The uptrend also pushed the Solana price near its 20-day exponential moving average (20-day EMA, red wave), which has acted as dynamic resistance for Solana since April 8. Therefore, a move above 20-day EMA resistance would provide the Solana token an impetus to move above immediate resistance near $39.
A continued uptrend might see the Solana price challenge resistance near $43.8, which previously supported Solana price action between May 11 and May 26. Additionally, traders might push SOL prices to target resistance from its 50-day EMA (purple wave) near $50.
Also Read: Solana (SOL) follows crypto rally reversal, drops 16.67%
In addition, Solana price’s relative strength index rebounded from the oversold region on June 15. The RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. Traders often consider oversold RSI values as a buy signal.
Furthermore, the rising RSI trendline indicates declining selling pressure for the Solana token.
However, if bears start a sell-off to profit from the recent uptrend, Solana price could fall to immediate support near $31.7. A breach below immediate support would see SOL test $28 support, which arrested SOL’s recent downtrend.
Finally, a marketwide sell-off might result in SOL prices falling to support near $25 before the Solana token recovers.
Solana Labs’ latest upgrade to its mainnet might be a reason behind SOL’s ongoing rally. The Solana community seems to be reacting positively to the latest network upgrade. In retrospect, Solana has had some network troubles, with the blockchain suffering from many outages.
The upgrade, released nearly a week ago, promised to deploy “real solutions,” according to a tweet from crypto exchange FTX CEO Sam Bankman-Fried. In addition, with v1.10.25, Solana plans to address several of its validator issues.
In detail, Bankman-Fried was retweeting the post of a Solana network validator who confirmed sub-second transactions.
Also Read: Is Solana (SOL) a buy after losing 50% in May? Technicals are conflicting.
But, the uptrend failed to bolster Solana’s TVL, which is currently $2.58 billion, down more than 77% from January 1’s $11.32 billion. On the other hand, an uptrend in SOL prices might bolster investor confidence, inviting more DeFi-centric investment in the Solana ecosystem.
At writing, SOL was trading at $35.6, up 4.47% on the day.
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