The Solana (SOL) price has increased by 5.5% today, making it the biggest gainer in the top 100 coins ranked by market capitalization.
The price of Solana trades inside a long-term ascending triangle pattern,
Solana Trades in Bullish Pattern
The SOL price has increased alongside a long-term ascending support trendline since the beginning of the year.
More recently, the price bounced at the support line on September 11 and began the current upward movement.
On September 28, the SOL price broke out from a descending resistance trendline (dashed), further accelerating its rate of increase. Despite the breakout, SOL still trades below the $27 resistance area.
When combined with the $27 area, the price movement creates an ascending triangle, considered a bullish pattern.
The daily RSI gives a positive reading. With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.
The RSI is above 50 and increasing, both signs of a bullish Solana trend.
What are the Analysts Saying?
The sentiment in the social media platform X is mostly positive.
Well-known trader Beastlyorion has the same ascending triangle mapped out, noting that the price is gaining upward momentum.
Crypto Rand also has a positive outlook for the Solana price. He has outlined several short-term breakouts from descending resistance trendlines, while ShardiB2 noted consecutive bullish daily closes.
Perhaps the most interesting outlook comes from Carpe Noctom, which shows a massive inverse head and shoulders (H&S) pattern that has been developing since February.
Similarly to the ascending triangle, the inverse head and shoulders are a bullish pattern.
SOL Price Prediction: Will Breakout Occur?
As outlined previously, there are two bullish patterns visible in the daily time frame: an ascending triangle and an inverse H&S. Both patterns support the ongoing upward movement and an eventual breakout.
Due to the increase in July (green circle), the trendline of the H&S pattern is not clear. In the case of the triangle, the resistance is at $27.
If the altcoin breaks out, an increase that travels the entire height of the patterns (black) can take the price to $40. This would be an increase of 66% and would constitute the highest price reached since August 2022.
Despite this bullish SOL price prediction, failure to break out from the $27 resistance area can cause a sharp decrease.
In that case, a 20% drop to the ascending support line at $20 will likely be the future price outlook.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/bullish-solana-price-patterns/