Solana (SOL) is currently showing signs of renewed strength, with technical indicators suggesting a potential breakout on the horizon. Market analyst Willjayducks recently highlighted a bearish divergence on the Solana weekly chart, indicating weakening momentum as the price surged to its peak. This divergence typically precedes sharp corrections, and indeed, Solana experienced a significant decline of around 67% in just 84 days.
However, Willjayducks believes that the bearish divergence has likely played out, signaling that the correction phase may be coming to an end. The MACD indicator is now curling upwards and has crossed above the signal line, hinting at a potential recovery. If SOL can maintain its upward momentum, the MACD line may cross above the zero line, confirming a shift in trend and potentially pushing Solana towards new highs.
Despite these bullish signals, Willjayducks cautions that a bearish outcome is still possible. The current momentum may not be strong enough to sustain a full reversal, leading to a continuation of the downside movement. As such, it is important to closely monitor price action and remain adaptable to all scenarios.
Whether Solana pushes higher or experiences a setback, staying alert and flexible is key. By keeping a close eye on the charts and being prepared for any outcome, traders and investors can navigate the market effectively. As Solana continues to build momentum, the possibility of a breakout looms, sparking interest and anticipation among market participants.