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- 1 Solana Crypto has been showing a consolidation near the 20-day EMA for the last few sessions, possibly preparing for a breakout.
- 2 The RSI and 14-day SMA have crossed the mean line, signaling a bullish trend on the horizon.
Solana crypto exhibited a steady pattern, consolidating near the 20-day Exponential Moving Average (EMA) across the last six intraday sessions. The consolidation began after suffering a rejection from the $190 level.
Furthermore, the pattern of price stabilization following a decline suggests the formation of a ‘higher low’ on the daily chart. Additionally, a notable shift in the volume inflow and the total value locked (TVL) hints at an emerging bullish trend.
Let’s delve deeper into the same and explore the potential trajectory of the Solana (SOL) price in the forthcoming trading sessions.
The TVL is on the Rise While Volume Dropped
As per data obtained from the financial website DefiLlama.com, there has been a significant rise in the TVL (Total Value Locked) in Solana. Earlier, TVL dropped in April from $4.87 Billion to $3.86 Billion. However, it has again reached $4.97 Billion.
Moreover, TVL represents the amount of capital staked or secured within the blockchain. A gradual increase in TVL can be interpreted as a shift in market engagement, a growing demand for the project, and a heightened commitment from investors.
Moreover, there has been a drop in volume inflow in recent sessions, while the price of Solana experienced a drop. It indicates the sellers are losing interest. It might be a prior indication of a possible uptrend.
Is Solana Ready for a Bull Run?
From a price action analysis, the long-term trend is positive above the key exponential moving average of the 200-day EMA. The short-term price seems to be taking a pullback and is probably preparing for a bull run.
The recent sessions are experiencing a consolidation, which may end if the bulls are able to surpass the $175 level. On a sustained move towards the higher side, the short-term traders and Investors may target $188 and $200 as the next profit-taking levels.
Furthermore, until the SOL price hovers below the $175 mark, it may remain in consolidation and might need more corrections towards the $160 and $150 levels.
Conclusion.
In recent sessions, Solana (SOL) crypto is consolidating near the 20-day EMA. The recent price action declined from $190, indicating a potential ‘higher low‘ formation. TVL has rebounded from $3.86 billion to $4.97 billion, suggesting increased market engagement and investor confidence.
Despite a recent volume decrease, the long-term outlook is bullish above the 200-day EMA. If Solana surpasses $175, it may target $188 and $200. Otherwise, it could be corrected to $160 or $150. This analysis points to a possible bullish trend if the consolidation phase ends with a breakthrough above the $175 level.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
