- Solana price hammered lower over the past nine trading days.
- Strong buying as SOL dipped into a strong support zone.
- Bearish fake-out likely, buyers are trickling in at new three-month lows.
Solana price has not been kind to bulls of late. Over the past nine trading days, SOL has dropped nearly 30% from the high of $204.75. However, the selling pressure at the highs was nothing compared to the buying pressure at the lows – a probable signal that support has been found.
Solana price finds buyers and probable support at $144 value area, new swing high anticipated
Solana price has an impressive support zone at $144. The level at $144 contains the second-largest high volume node in the extended 2021 Volume Profile and the weekly Kijun-Sen. Additionally, the weekly Kijun-Sen has been in a flat condition for an extended period, which adds weight to its support strength.
From an oscillator perspective, the Relative Strength Index (RSI) is testing the first oversold level in a bull market (50). This is the first test of 50 for the RSI since July 16 2021. This test comes as Solana price is right on top of a significant price support level that is exceptionally positive for bulls.
The most critical oscillator condition, however, is the Composite Index. There is a hidden bullish divergence between the candlestick chart and the Composite Index. Hidden bullish divergence is when price action prints higher lows, but an oscillator prints equal or lower lows. What's more, the Composite Index hit a new all-time low. A strong bounce between $140 and $150 that will rally to the $200 value area is expected in a short period of time.
SOL/USDT Weekly Ichimoku Chart
Any near-term bullish bias will be invalidated if Solana price has a weekly or daily close below the weekly Kijun-Sen at $140.
