Solana (Sol) is starting to show signs of renewed strength since the technical indicators suggest potential breakout. On the weekly chart, the Macd is clouding and recently has crossed the signal line, a bullish signal that often precedes the main price movements. With the momentum that built slowly, traders are looking closely to see if this turn marks the beginning of a wider event.
Momentum is built for a possible Solana breakout
In a recent post X, the market analyst Willjayducks attracted attention to a significant bearish divergence that took place in the Solana weekly card. He stressed that while the price increased in its upper part, the RSI and MacD indicators showed weakened momentum. This divergence between price action and Momentum is a classic technical model that generally precedes acute corrections.
Following this configuration, Solana suffered a strong drop, losing about 67% of her value in just 84 days. According to Willjayducks, this dramatic drop suggests that the lowered divergence has “probably played”, which implies that the correction phase could approach its end.
He also developed that the MacD is now getting growing up and has recently crossed the signal line. This crossover suggests that the recent pressure down could be loosened, preparing the foundations for potential recovery. According to his analysis, if Sol can collect sufficient strength and support his current moment upwards, the MacD line could possibly cross over the zero line, a more definitive bullish signal that generally confirms a movement of the trend.
If this scenario took place, the analyst believes that Solana can be ready to push towards new maximums, rekindle the interest between traders and investors. However, he also noticed a word of caution: if or when this bullish violation occurs, it will monitor the graph closely for any emerging signs of a bearish divergence, which could once again suggest a overheated market.
Reference result still on the table
In the climax, the analyst said that there is still a possibility that things are exhausted here and continue to a trend of the bear. Despite the recent upward signals and technical improvements, he warned that the current momentum may not be strong enough to support a complete reversal.
While prices can block, by reporting the market in a prolonged period of downward movement, Willjayducks stressed that everything we can do for now is to look closely at the action of prices and plan all the scenarios. Whether the market pushes higher or fades into weakness, she recommended to remain vigilant and adaptable.