SOL Technical Analysis: Increased Buying Pressure Brings Trend Reversal
Solana is a very efficient open-source project which relies on the technology of blockchain's permissionless nature to offer decentralized financial (DeFi) solutions. The concept and the initial development began in the year 2017. Solana was officially launched in March 2020 by the Solana Foundation with its headquarters located in Geneva, Switzerland.
The Solana protocol was created to ease decentralized application (DApp) design. Its goal is to improve the capacity by introducing a proof-of-history (PoH) consensus, which is paired with the core blockchain's proof-of-stake (PoS) agreement of blockchain.
Let us move ahead to read about SOL technical analysis.
Past Performance of SOL
The SOL coin price shows a bullish recovery within the broadening falling wedge pattern in the daily chart. The price grows more than 20% after finding demand near the support trendline of the pattern. Moreover, the price jump breaks above the rounding bottom pattern and teases a rally to the resistance trendline.
SOL Technical Analysis
The SOL technical analysis shows a bullish rally backed by the rounding bottom breakout and the demand near the support trendline. Moreover, the price breaks above the $100 psychological barrier increasing the greed factor.
The crucial Exponential Moving averages showcase a death cross in the daily chart as the EMAs track the previous downfall. Therefore, a price jump to retest the death cross is possible in the near future.
The MACD indicator shows a bullish crossover of the MACD and signal lines below the zero line in the daily chart. Furthermore, the rising trend of bullish histograms marks the start of a bullish recovery.
The RSI indicator shows a spike in the bullish powers as the slope escapes the oversold zone breaks above the 14-day SMA. However, the slope struggles to reach the 50% line reflecting a slight weakness in the uptrend.
Therefore, the technical indicators suggest a lack of bullish commitment in the ongoing uptrend and the death cross and bring bearish influence.
Upcoming Trend
The SOL coin price can show a short to mid-term bullish phase as it heads higher to reach the 50-day EMA. However, the death cross can bring influence the 50-day EMA into giving dynamic resistance.
The potential upcoming uptrend can face opposition near the $135 and $170 horizontal levels. However, a reversal can result in a downfall to $90 and the $70 horizontal zone.