- SOL price has fallen over -35% from its ATH set this week
- SOL Price has formed a broadening wedge
- 30MA continues to act as support
Will Bulls Hold?
Solana (SOL) price has been one of the best performing coins over the last few weeks as prices have risen from $70 to $190 in a little over two weeks. This price action has been truly impressive as SOL is now a top 10 cryptocurrency by market cap. Solana is a highly functional open source project that aims to provide decentralized finance solutions using its highly efficient blockchain. SOL now has many advantages to other blockchains such as ETH, Solana (SOL) can process a massive amount of transactions for a little amount of cost. All these features have led many big players to become bullish on the Solana ecosystem.
While looking over the last few weeks, we can see how SOL price has been holding above a support trend line. This price action has formed a pattern which is called an ascending broadening wedge. As time moves on, each trend line of this pattern spreads out more. For the past few weeks, price has highly respected each of these trend lines.
At the time of writing, SOL is attempting to hang on to its bottom support trend after the crypto market went for a nasty fall yesterday. For SOL to continue on with its bullish trend, it must stay above this trend & break above the major resistance mark of $167.
Solana Price Analysis: SOL/USDT 4 Hour Chart
Considering that SOL price is currently trading above its major support of $151 along with the support trend line that has held for many weeks, we can assume a break below these marks will be disastrous for short term growth. Along with these two major support marks lie the 30MA which has acted as support ever since $70. In the case that bulls fail to hold these marks & price gets pulled below, we should expect SOL price to start a short term downtrend that will first land prices within the major support of $127-$136.
- While looking at the Stochastic RSI, we can see that strength has fully reset into the oversold territory. The MAs have been curling around which may indicate a bounce is soon to come. The strength must break above the 50 value to be confirmed back into a bullish state.
- While looking at the MACD we can see a support level that has been respected for nearly 2 weeks now. As long as the MAs of the MACD can hold above this support, SOL price is in a bullish state.
SOL Intraday Analysis
- Spot rate: $155
- Trend: Bullish
- Volatility: Medium
- Support: $151
- Resistance: $167