Solana (SOL) has been going through a bit of a downturn in terms of price lately and has failed to stay above $32. Despite that, NewsBTC’s Anush Samal seems to see a bullish formation for the altcoin that could potentially lift the price to $30.
At the moment, Solana is hanging below a crucial resistance, but a break could result in a price explosion of 20 percent.
Little action for Solana
Over the past 24 hours, Solana is up 0.70 percent to a price of $ 24.98, but that doesn’t provide much interesting action on the weekly chart. Despite the coin’s challenges, two essential bullish signals can be found: a morning start reversal signal and a bullish pennant formation.
These signals suggest that, should Solana succeed in breaking the resistance, a rally to the price level of two weeks ago is in the pipeline.
Overall, the market seems particularly troubled by the fact that Bitcoin has fallen back to the $29,000 range.
A chance for Solana to bounce back above resistance is likely to require support from the broader market as well. Solana’s market value has also fallen, suggesting a slight weakening in the bulls’ purchasing power.
Crucial for Solana today?
Bitcoin’s further recovery may require some positive macroeconomic data. In that respect, the PCE Price Index is on the agenda today, an inflation indicator that is at the top of the Federal Reserve (the American central bank).
If it turns out to be lower than expected, there is a chance that the market will get a boost today. Perhaps that is enough to give Solana that tick up towards $ 30.
In the end it all remains to be seen, because this is of course just one inflation meter. Bitcoin has now become a world-class financial asset and for that reason the Bitcoin price depends on thousands of different factors.
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