On Wednesday, the crypto market experienced a sudden pump and rebounded several altcoin from their crucial support. The Solana (SOL) price faced a similar outcome as it bounced back from its monthly support, registering an 8% intraday gain.
Key points:
- The daily-RSI chart shows an evident bullish divergence.
- The SOL price forms a morning star pattern at $80 support
- The 24-hour trading volume in the Solana coin is $2.57 Billion, indicating a 12.03% gain
Source-Tradingview
The Solana (SOL) price action resonates within a descending triangle pattern. On March 2nd, the altcoin turned down from the falling trendline ($105) and plunged to the $80 neckline. The buyers have aggressively defended this support for more than a month now, preventing the sellers from extending any further losses.
Today, the altcoin jumps from this $80 support with an evening star pattern, allowing the traders to set up another recovery. Furthermore, the coin price nearing the apex of the bearish pattern can soon provide a decisive breakout.
In contrast to SOL price action, the daily-RSI chart shows an upside rally. This positive divergence in the RSI slope indicates the increasing underlying bullishness in the market, providing a better possibility for a bullish breakout from descending triangle pattern.
However, the down-sloping crucial EMAs(20, 50, 100, and 200) maintain an overall bearish trend.
Descending Trendline Restrains The buyers’ Recovery Attempt
Source- Tradingview
In SOL buyers manage to breach the overhead resistance trendline, the buying pressure would intensify and rally the coin to $105 resistance followed by $122.
Alternatively, if sellers dumped the coin price below the $80 support, the renewed selling would trigger a free fall to the $66 mark.
Anyhow, the range between the descending trendline and the $80 support should be considered as no-trading zone, and the coin traders should wait for a guinea breakout before entering a new position.
- Resistance level- $105, $122 and EMAs(20, 50, 100, and 200)
- Support levels- $80, $66
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/solana-price-prediction-trending-rsi-signals-bullish-breakout/