Here’s How This Chart Pattern May Influence Solana’s Future Price

A descending triangle pattern governs the Solana price action in the daily time frame chart. The series of lower-high formations within this pattern indicates a gradual loss of bullish momentum and ultimately allows sellers to break the neckline support. The price currently trades at $27.6 and shows a reversal sign at $26.3 support. Are you supposed to buy more?

Key points

• The Solana price losing for three consecutive days retest the bottom support of $26.3
• The lower price rejection candle at $26.3 indicates buyers actively defend this support.
• The 24-hour trading volume in the Solana coin is $1.827 Billion, indicating a 9% loss.

Source-Tradingview

The Solana coin price has resonated within a descending triangle pattern over the last six months. Furthermore, the coin price retested the pattern’s resistance trendline and neckline support($27.3-$26.3) thrice, validating the traders’ respect this setup.

On November 6th, the SOL price reverted from the resistance trendline with a bearish engulfing candle. Amid the rising negative sentiment in the crypto market, the altcoin dropped for the following two days, registering a total loss of 26%.

Early today, the Solana coin witnessed a 15.5% intraday loss and tried to breach the $26.3 neckline support. However, the high demand pressure below the aforementioned level reverted the prices higher with long-tail price rejection.

This lower price rejection attached to the daily candle indicates a strong possibility for price reversal. This rejection hints continuation of price consolidation within the pattern by pushing the altcoin back to the overhead trendline.

Anyhow, this bearish pattern should encourage the Solana price to breach the neckline support and resume the prevailing downtrend. Doing so will plunge the prices to $22 or $17.5.

Conversely, a bullish breakout from the resistance trendline will invalidate the bearish pattern. 

Technical indicator

RSI: despite a sudden downfall, the daily-RSI slope shows a bullish divergence with respect to $26.3 support. This divergence indicates the buying pressure rise at this support, suggesting a higher possibility for a bullish reversal.

EMAs: the falling prices breached 20, 50, and 100 support, offering an additional edge to market sellers

Solana price intraday level

• Spot price: $27.16
• Trend: Bearish
• Volatility: Medium
• Resistance levels: $30 and $34.5
• Support levels: $26.3 and $22.2