SOL Technical Analysis: Will Solana Take The Bullish Exit?
Table of contents
Key Technical Points:
Past Performance of SOL
The SOL price action shows a symmetrical triangle pattern in the daily chart, with the 50-day SMA moving along with the resistance trend line. The buyers at the support trendline recently diffused a double top pattern and continue undermining the opposing SMA's rejections. Additionally, the morning star formed that the support trendline increases the likelihood of a bullish breakout.
Source - Tradingview
SOL Technical Analysis
The SOL prices struggle to find a bullish follow-through within the symmetrical triangle as the price action bottles up the pattern. However, traders may shortly find the breakout entry opportunity as the space within the pattern fills up.
The MACD indicator struggles to sustain a bullish bias as the fast and slow line teases a bearish crossover slightly below the zero line. Moreover, the falling trend in the positive histograms increases the likelihood of a downtrend continuation in the indicator.
The RSI indicator shows a lateral trend below the halfway line struggling to find support at the 14-day SMA. However, the morning star shows an increase in the underlying bullishness as the RSI slope jumps above the 14-day average line.
In a nutshell, SOL price action analysis suggests the traders relax and wait for the price action confirmation.
Upcoming Trend
If the buyers can propel the prices above the resistance trendline, SOL market value may jump to the overhead resistance of $42.
Conversely, if the support trendline fails to hold the bearish weight, a downtrend might drop to $28.
Resistance Levels: $42 and $50
Support Levels: $30 and $25