What is the potential impact on price?

The 50-day simple moving average (SMA) of Solana (SOL) has begun an upward trend and is poised to cross the 200-day SMA in the coming days. This potential crossover is a bullish signal known as a “golden crossover,” and it often hints at significant upward momentum in prices.

If the golden cross forms as expected, it could potentially push Solana’s price above the $200 mark, a level it hasn’t reached in months. This analysis delves into the factors that may contribute to this in the near future.

Solana is ready to rise

BeInCrypto’s assessment of the SOL/USD one-day chart shows that the 50-day SMA (blue line) is on the verge of crossing the 200-day SMA (yellow line).

Read more: Solana vs Ethereum: Full Comparison

The 50-day SMA calculates the average price over the last 50 days. It acts as an indicator of short-term price trends. When the price of an asset rises above this level, it signals an uptrend in the market.

Meanwhile, the 200-day SMA measures the average price over the last 200 days and is an indicator of the long-term trend. When an asset’s price rises above its 200-day SMA, it indicates a sustained long-term uptrend.

When the 50-day SMA is poised to cross above the 200-day SMA, the asset’s recent price momentum (over the past 50 days) is accelerating faster than its long-term trend (over the past 200 days). This crossover is called the Golden Cross. This confirms the transition from a downtrend to an uptrend and suggests a potential increase in prices, often prompting traders to consider long positions.

The successful formation of this bullish signal depends on sustained buying pressure in the SOL market. Positive Chaikin Cash Flow (CMF) suggests this could materialize in the coming days. Currently, CMF SOL is trending upward and is 0.24.

The CMF indicator measures the flow of money into and out of the asset market. A positive CMF value indicates that buying activity is exceeding selling pressure, signaling an increase in demand. In addition, this confirms that trading volume is actively supporting the upward momentum of the asset price.

Additionally, positive data from Solana’s Bull Bear Power indicator supports this bullish outlook. At the time of writing, this figure is 16.57.

This indicator measures the balance between buying and selling pressure in the market. When it is positive, market sentiment is bullish as buyers are more active than sellers.

SOL Price Forecast: Key Price Level to Watch

At press time, Solana is trading at $176.46, just above the key support level of $171.91. If this level continues to hold as support, it could pave the way for Solana’s price to rise towards the resistance at $188.74. A successful break above this level could take Solana’s price to $210.18, the high it last reached on March 18.

Read more: Solana (SOL) price forecast for 2024/2025/2030.

On the other hand, if the $171.91 level fails to hold as support, Solana’s price could fall to $160.09. If demand weakens to this level, the price of the altcoin could fall further to $148.27.