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Solana (SOL) is beginning to show signs of renewed strength as technical indicators hint at a potential breakout. On the weekly chart, the MACD is curling up and has recently crossed above the signal line, a bullish signal that often precedes major price movements. With momentum slowly building, traders are now watching closely to see if this shift marks the beginning of a larger rally.
Momentum Builds For A Possible Solana Breakout
In a recent X post, market analyst Willjayducks drew attention to a significant bearish divergence that unfolded on the Solana weekly chart. He pointed out that as the price surged into its blow-off top, the RSI and MACD indicators showed weakening momentum. This divergence between price action and momentum indicators is a classic technical pattern that typically precedes sharp corrections.
Following this setup, Solana experienced a steep decline, shedding approximately 67% of its value in just 84 days. According to Willjayducks, this dramatic drop suggests the bearish divergence has “arguably played out,” implying that the correction phase may be nearing its end.
He further elaborated that the MACD is now curling upward and has recently crossed above the signal line. This crossover suggests that the recent downward pressure may be easing, setting the stage for a potential recovery. According to his analysis, if SOL can gather enough strength and sustain its current upward momentum, the MACD line could eventually cross above the zero line, a more definitive bullish signal that typically confirms a shift in trend.
Should this scenario unfold, the analyst believes Solana may be poised to push toward new highs, reigniting interest among traders and investors. However, he also noted a word of caution: if or when this bullish breakout occurs, he’ll be closely monitoring the chart for any emerging signs of bearish divergence, which could once again hint at an overheated market.
Bearish Outcome Still On The Table
In the climax, the analyst mentioned that there is still a chance things just fizzle out here and continue into a bear trend. Despite recent bullish signals and technical improvements, he cautioned that the current momentum might not be strong enough to sustain a full reversal.
While price action may stall, leading the market back into a prolonged period of downside movement, Willjayducks emphasized that all we can do for now is watch price action closely and plan for all scenarios. Whether the market pushes higher or fades into weakness, he advised staying alert and adaptable.
