SOL eyes $170 after sweeping the August 4 low

Key  takeaways

Solana’s SOL is down 1% within the final 24 hours and is approaching $160 after dropping to $146 on Tuesday.
The cryptocurrency may reclaim the $170 excessive if the restoration continues.

SOL recovers from the Tuesday dump

SOL, the native coin of the Solana ecosystem, is buying and selling near the $160 mark after recording huge losses on Tuesday. The coin dipped to the $146 mark on Tuesday, sweeping the low of August 4th earlier than embarking on a restoration.

It has now added practically 5% to its worth over the previous few hours and is now buying and selling at $159 per coin. The constructive efficiency comes because the broader cryptocurrency market recovers from the dump.

Bitcoin briefly dipped under $100k on Tuesday however has now recovered and is buying and selling above $102k per coin. Ether can also be buying and selling above $3,300 after testing the $3k psychological degree.

SOL may rally to $170 amid market restoration

The SOL/USD 4-hour chart is bearish and environment friendly because the cryptocurrency has underperformed in current days. The technical indicators stay bearish however are displaying indicators of restoration. 

The 4-hour RSI of 32 implies that SOL is at the moment within the oversold area. This might give it a breather and permit the coin to rally increased within the close to time period. The MACD traces are additionally throughout the bearish area, suggesting promoting stress.

If SOL continues its restoration, it may rally in the direction of the primary main resistance degree at $170 over the subsequent few hours. An prolonged bullish run would permit the cryptocurrency to focus on the swing excessive at $188.

Nonetheless, if the bulls fail to defend SOL’s value above the $150 psychological degree, the cryptocurrency may dip in the direction of the June 27 low of $136. At present, the development is switching bullish, and consumers may regain management of the market. If the day by day ranges maintain, SOL may rally increased over the approaching hours and days.