Sol appeared to have finished retracing following the latest bounce back from an 11-day low. It looks set to repeat a bullish pattern following a 7% recovery overnight, but buying pressure appears low.
The mid-month bounce brought a significant increase in Sol’s price as it rallied to a new high of $296.5, although it later lost steam and retraced briefly after a sharp rejection. The crypto entered a consolidation mode for a few days and later plunged, closing last Sunday with an engulfing.
That suggested a major sell, and as we can see on the daily chart, Sol saw its biggest drop in a week as it tested a low of $220 yesterday. This drop came as a retest of the January 18 breakout that triggered a huge surge in volatility. It later rejected the low and recovered well above $230.
As volatility enhanced today, the price touched $244 but lost buzz due to a rejection and retraced briefly to where it is changing hands at $239.
Sol’s current setup looks like the mid-month pattern (bullish pin bar) that sent the price to a new high. If such a pattern repeats, we can anticipate another major run above the key $300 level in the next few days. A pull below yesterday’s low should bring a retest at $200 before taking off.
SOL’s Key Level To Watch
Source: Tradingview
Repeating the mid-month pattern, Sol must flip through the $250 level to retake the crucial $272 resistance. The main resistance level is located at $296. A cross above it could sprout another surge to $320.
Meanwhile, Sol is sitting well on $223 support. A drop off this support could drive us to a low of $202. The lower level to watch for drops is $185.
Key Resistance Levels: $272, $296, $320
Key Support Levels: $223, $202, $185
- Spot Price: $239
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: grrecaredo/123RF// Image Effects by Colorcinch
Source: https://nulltx.com/solana-price-analysis-prediction-january-28-sol-is-likely-to-repeat-bullish-rally-following-this-pin-bar-pattern/