The Solana(SOL) price provided a strong rally during the weekdays, registering a 29% gain from $105. However, the bullish momentum showcased weakness during the weekend as the price struggled to sustain above the $135 mark. So, where will the weekly candle close this time?
Key points
- The SOL chart shows higher price rejection candles at $135 resistance
- The 24-hour trading volume in the Solana coin is $2.57 Billion, indicating a 12.03% gain
Source-Tradingview
The descending triangle pattern governed the first three months of 2022. This bearish pattern usually boosts the selling momentum after a breakdown from the bottom support line. However, amid the recovery sentiment in the crypto market and the bullish divergence in RSI, the SOL price triggered a bullish breakout from this pattern.
The SOL buyers breached the price pattern’s descending trendline on March 18th. As a result, the post-retest rally sliced through the $120 mark, indicating a 55% gain within just two weeks. The parabolic rally reached a high of $144.5, its highest in the last two months.
However, the aggressive sellers prevented a candle closing above the $135 resistance, and a higher price rejection candle suggests the price may trigger a minor correction.
Today, the coin is 2.14% up and reattempts to pierce the overhead resistance($135). However, the high-tail rejection attached to this candle encourages a bearish reversal, which could descend 10.5% to $120.
Technical indicator
Vortex Indicator: The widespread gap between the VI+ and VI- slope highlights an overall bullish tendency.
The SOL price trading above crucial EMAs(20, 50, 100, and 200) suggests that the buyers have a better advantage over the sellers. Moreover, the 200-day EMA moving near the $120 support could strengthen the buyers’ defense at his level.
- Resistance level- $135, $152
- Support levels- $120, $105
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-analysis-sol-price-hints-dip-opportunity-to-120/