SOL Technical Analysis: Bulls Clinging To Psychological Mark of $100

Key technical points:

Past Performance of SOL

SOL coin prices formed a pattern of a falling wedge during the beginning of this year's quarter that resulted in a 35% drop and then reached $78. But the buyers surpassed the trend and resulted in a bullish break out of the wedge that was falling. However, a reversal rally shattered multiple support levels to retest the psychological barrier of $100. 

Source-Tradingview

SOL Technical Analysis 

The breakout rally in SOL coin price failed to surpass the $136 level but resulted in an increase of 62% in a fortnight and then breaking above the 50 and 100-day EMA. The failure of the bulls to cross the $150 mark triggered higher price rejection candles to be created which led to a bearish reversal.

The crucial daily EMAs (50, 100, and 200) maintain a bearish alignment in the daily chart as the prices struggle to sustain above the 50-day EMA. Hence, the EMAs keep playing the role of providing dynamic resistance. 

RSI Indicator: The RSI slope surpasses the 50% line after the sideways trend in the nearly oversold zone reflecting a surge in underlying bullishness. However, a recent correction warns the slope crosses below the 14-day average line.

MACD Indicator: The MACD and signal lines give a bullish crossover after showcasing reversal below the zero line. Hence, the indicator reflects a bullish fightback to regain trend control.

In a nutshell, the SOL technical analysis highlights the double-edged nature of the price action.

Upcoming Trend 

The SOL coin price action shows the most recent daily candle is a sign of a major selling that was observed at $108 which resulted in a bearish-looking candle. Therefore, a close below the psychological threshold of $100 would rekindle the bearish trend, and trigger an increase to $88. In a bullish market, the price of a close higher than $108 will guarantee an increase in price to $122.

Support Levels: $100 and $88

Resistance Levels: $108 and $120