Solana’s native cryptocurrency (SOL) looks set for an upside movement, according to Matthew Dixon, CEO of Evai, the AI and ML-driven crypto ratings platform. Dixon used a chart analysis to show that SOL could rally from its current price region and head toward the $35 price level.
SOL has been in a sideways channel since reaching a yearly high of $27.12 on February 20, 2023. It achieved the price following a rebound after the Layer 1 scalability-inclined crypto surged by 180% at the beginning of the year. Since then, SOL’s price has trended sideways, not going above $27.1 and not falling below $16.01, according to data from TradingView.
Looking closer at the trend within the trend, Dixon observed that SOL’s sideways pattern imbibes an upside impulse with downside corrections. He also noted that divergences have not formed yet on the chart. Based on these factors, he predicts SOL could be nesting ready for an upside movement.
Available reports suggest that crypto investors are paying close attention to SOL’s price at the currency level. The coin’s price action puts it around significant support at $19.80. That support also coincides with the 200 Moving Average, considered a strong indicator in technical analysis.
If SOL should bounce off this support region, Dixon’s projection could materialize, and the price could rally toward the established yearly high and possibly higher. However, a confirmed break below the current support level could see the bears exert more authority in the market. They could push SOL’s price lower to retest the next significant support around $16.1.
SOL is the ninth largest cryptocurrency by market capitalization, according to CoinmarketCap. Per total value locked (TVL), data from the DeFi data aggregator, DeFi Llama shows there is currently $268.74 million on Solana’s blockchain, reflecting a 30% increase since the beginning of 2023.
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Source: Cryptocurrency - investing.com
