Bullish Pattern Sets Solana Price for 10% Upswing; But There’s a Catch

SOL Price Prediction: Amid the increasing bearishness in the crypto market the Solana coin price has witnessed a correction phase for over a week now. From the peak of $23.9, the coin price has tumbled 15.4% to reach the current price of $1.61. However, the downfall was shaped into a famous bullish continuation pattern called a falling wedge. This pattern offers a bullish technical setup that could assist buyers to undermine the prior correction phase.                                                                                                                                                                                           

Key Points

• A bullish breakout from the wedge pattern’s resistance trendline will drive the SOL price 8-10% higher.
• A descending trendline governs the ongoing downtrend in the Solana coin
• The 24-hour trading volume in the Solana coin is $298.5 Million, indicating a 13% loss.

Source-Tradingview 

In the 4-hour time frame chart the Solana price shows the formation of a falling wedge pattern. In theory, the coin price resonating between the pattern’s converging trendline indicates a gradual loss of bearish momentum.

Once the prices reach the peak of the wedge pattern, the buyers are likely to breach the overhead trendline which will signal the end of ongoing correction. A 4-hour candle closing above the trendline will offer buyers suitable support to lead a price rally 8-10% higher and challenge the long-coming resistance trendline.

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Over the past ten months, a descending trendline has maintained a steady downtrend and restricted buyers from carrying a sustained recovery. Thus, a potential retest to the overhead trendline will trigger a battle between buyers and sellers to regain trend control. 

If the sellers continue to defend the downsloping trendline, the coin holders may witness a prolonged correction.

On a contrary note, a breakout above the signal for trend reversal.

Technical Indicator

RSI: contrary to the sideways trendline, the RSI slope in the 4-hour chart rising indicates rising buying pressure at lower levels. This bullish divergence gives additional confirmation for the overhead trendline breakout

EMAs: the 20 EMA aligned with the aforementioned pattern resistance trendline gives an extra edge to short sellers.

Solana Coin Price Intraday Level

• Spot price: $20.13
• Trend: Bullish
• Volatility: Medium
• Resistance levels: $22.5 and $27
• Support levels: $20 and $16