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Solana Surges 34% Weekly But is the New Year Rally Running out of Steam? (SOL Price Analysis)

Summary:
In a somewhat surprising move, Solana’s price exploded this past week, putting bears on the defensive. Key Support levels: .5 Key Resistance levels: After falling to the single-digit territory (almost ), Solana seemed destined to continue on the bearish footing. However, this was interrupted on Monday when the price suddenly spiked higher after finding good support at .5. This led SOL to close the past seven days with a 34% price increase. The resistance is at , and SOL’s price reached during this most recent rally. Chart by TradingViewTrading Volume: The volume exploded on Monday and remained high until Wednesday. Today the volume opened in red, and the price is falling, which could mean a pullback is likely. RSI: The daily RSI moved above 50 points

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In a somewhat surprising move, Solana’s price exploded this past week, putting bears on the defensive.

Key Support levels: $9.5

Key Resistance levels: $15

After falling to the single-digit territory (almost $8), Solana seemed destined to continue on the bearish footing. However, this was interrupted on Monday when the price suddenly spiked higher after finding good support at $9.5. This led SOL to close the past seven days with a 34% price increase. The resistance is at $15, and SOL’s price reached $14 during this most recent rally.

SOLUSDT_2023-01-05_16-11-06
Chart by TradingView

Trading Volume: The volume exploded on Monday and remained high until Wednesday. Today the volume opened in red, and the price is falling, which could mean a pullback is likely.

RSI: The daily RSI moved above 50 points quickly and reached almost 60 points. If bulls manage to keep it above 50, then the bias could turn bullish.

MACD: The daily MACD completed a bullish cross on Monday, and the histogram continues to make higher highs. So long as this continues, the outlook will remain positive.

SOLUSDT_2023-01-05_16-11-22
Chart by TradingView

Bias

The bias for SOL is slightly bullish right now, but buyers have to break above $15 to confirm it.

Short-Term Prediction for SOL Price

At this time, the biggest challenge for Solana is to break above the $15 resistance level. That would confirm a change in the trend and turn the chart bullish. However, even if SOL does not manage to do that, as long as buyers maintain the price at two digits, that can still be considered a significant victory for them.

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