Bulls should strengthen above $20
Solana (SOL) traded above $20.00, reaching $20.50 after dropping to $18.40 earlier this month. Could the Bulls use positive sentiment for Solana to move up?
Solana's price has reached a key technical level, rising to $20.50 in the 24-hour period, a 10-day high above the previous support and resistance area. With an increase of almost 4% in the last 24 hours, Solana is doing more than the top ten kriptovalyutnyhs by market capitalization except for XRP.
Bitcoin has dropped below $27k after the latest SEC ruling delays multiple venues' ETF applications, including BlackRock's. Valkyrie ETH Futures ETF bought by Valkyrie ETH Futures ETF near $1,700 on news that Ethereum was lower despite whales bracing themselves for bullish levels.
What is the outlook for Solana, an altcoin with a market cap of $8.3 billion?
SOL Price: What's Next for the Bulls?
SOL's price rally today comes as SOL bulls conspire to stay above trendline support set for December 2022 around $9.60.
As you can see on the daily chart below, Solana has broken out of its positive trend (not perfect). The price action follows a break from the bearish line seen this week from the July 2023 high of $32.40.
Solana price view on daily chart. Source: TradingView
Earlier today, crypto trader Blutz highlighted the potential of a reversal head and shoulders pattern. The neckline of the pattern is $20.30, while the 50-day EMA offers a supply zone of $20.22.
A hold at these levels or above is crucial for bulls' short-term plans, supported by the daily Relative Strength Index (RSI) with a view above the neutral mark.
The flip side of the scenario above is Solana's price breaking below the $18.80 demand zone. Increased sell-side liquidity in this area could push SOL to $17.60. From here, bulls can count on support near $14.50.
