Solana (SOL) price just hit a new all-time high of $264.39 during the trading session on November 23. It has since seen a 3% correction, bringing the popular altcoin to $255.12 at press time.
Despite the pullback, the uptrend for the altcoin remains intact. Daily chart analysis points to two reasons why Solana could hit a new high in the near future.
Solana Bulls Overwhelm Bears
On the SOL/USD one-day chart, Solana is above the green line of the Super Trend indicator. This indicator measures the overall direction and strength of a price trend. It appears as a line on the chart, changing color according to the current trend: green indicates an uptrend, while red indicates a downtrend.
When the Super Trend line is above the price of an asset, it signals a downtrend, suggesting a continuation of the bearish momentum. In the case of Solana, when the Super Trend line turns green and moves below the price, buyers are in control.
This green line often acts as a support level, where increased buying pressure can spur a recovery after a decline. For Solana, this support is currently established at $213.53.
Furthermore, the coin’s price is above the Ichimoku cloud, further strengthening the bullish outlook. This indicator tracks the momentum of an asset’s market trend and identifies potential support/resistance levels.
When an asset’s price is above the Ichimoku cloud, it signals an uptrend. It shows that the asset is in an uptrend with further upside potential. In this case, the cloud is a dynamic support zone below the price, reinforcing the bullish sentiment.
SOL Price Forecast
Currently, SOL is trading at $255.12, below the new resistance at the all-time high of $264.39. If the buying pressure continues to increase, the coin will flip this level into support and test a new high.
On the other hand, if profit-taking activity increases, SOL could partially recoup its current gains to trade at $231.35. If this level fails to hold, SOL will fall to the support level created by the Super Trend indicator at $213.53. This will invalidate Solana’s ability to reach a new high in the near future.
