Solana (SOL) is currently trading at $80.12 after experiencing a 5.56% decline, but technical analysis suggests that it may be poised for recovery in the near term.
The cryptocurrency's price has fallen below its major moving averages, including the 7-day SMA and 20-day SMA, which are at $83.13 and $84.34 respectively. However, the Relative Strength Index (RSI) reading of 33.69 indicates that SOL is approaching oversold territory without being extremely overbought.
The Moving Average Convergence Divergence (MACD) histogram has effectively reached zero, which could indicate a shift in momentum towards a bullish direction. The Bollinger Bands analysis shows that SOL is trading near the lower band support, with the %B position at 0.1983 indicating that it is within the lower 20% of its recent trading range.
According to technical indicators, SOL could potentially recover towards the $88-$92 range in the next 2-3 weeks if key support holds. A bullish scenario involves breaking above the $84 resistance level and reclaiming momentum towards the upper Bollinger Band near $91-92. This could set up a test of the $105-$110 zone, where the 50-day moving average currently resides at $111.28.