Pattern Breakout May Relieve SOL From Range Rally

The Solana (SOL) price has resonated within a symmetrical triangle pattern for nearly a month. The price action close to the pattern’s apex may soon give a breakout opportunity. A bullish breakout from this resistance would resume the recovery rally with the expected target at $47.2. However, it may not be wise to enter now. 

Key points

• The SOL price rose 9% since last week
• The daily-RSI slope sustaining above midline indicates the trade feels positive for this coin
• The 24-hour trading volume in the Solana coin is $1.24 Billion, indicating a 35% gain

Source-Tradingview

The SOL/USDT pair has been steadily rising for the past two months in response to an ascending trendline. The altcoin accounted for an 82% rise from the $26.06 low as the bull run marked its record high at $47.7.

However, with the largest cryptocurrency-Bitcoin struggling to surpass $24000, the crypto market is witnessing slight uncertainty among market participants. As a result, the SOL stalled its recovery and showed few lower high formations.

Furthermore, the current consolidation in SOL price showcased the formation of a symmetrical triangle pattern. In addition, the price action gradually narrows within the two converging trendlines, indicating a no-trading zone.

This continuation pattern usually encourages the resumption of the prevailing trend(in the current scenario- uptrend). However, a counter trend move is possible if the coin price breaches the support trendline.

Thus, if sellers succeed in doing so, the SOL price may tumble 16.4% and tag $35 support. Any further downfall would indicate weakness in bullish momentum. 

However, considering the most likely, the SOL price may breach the overhead trendline to continue its recovery. The potential rally may surge 10.2% higher and challenge the $47.2 resistance. 

Technical indicator

EMAs: The downsloping 20-and-50-day EMA has shifted sideways, indicating an early sign of a downtrend nearing its end. If coin prices breach these slopes, they may provide additional support for a recovery rally.

MACD indicator: The multiple crossovers between fast and slow lines accentuate a current consolidation phase. However, these lines moving above the midline indicate the buyers possess an upper hand.

• Resistance level- $42.8 and $47.2
• Support levels- $38.5 and $35