Following a sharp drop in early November, the Solana coin price turned sideways, forming an inverted descending triangle pattern. Under the influence of this pattern, the coin price has been wobbling between a fixed horizontal resistance and a downsloping trendline for the past two months. Usually, this pattern forms in a highly volatile market, where successive price swing is wider than the prior. Though its pattern is not one of the most commonly observed chart patterns, it could provide a significant bullish opportunity upon the breakout of its neckline.
Key points
- The $12.8 resistance breakout sets SOL price for a 10% jump
- Bollinger band indicator hint the price action needs to stabilize before rising forward
- The 24-hour trading volume in the Solana coin is $445.5 Million, indicating an 85.8% gain
Source-Tradingview
Amid the recent recovery in the crypto market, the Solana price bounced back from the $8 support on December 29th. This new year’s recovery drove the SOL price 70% higher within a fortnight and pushed it to its current price of $13.45. Furthermore, this bullish recovery also breached a local resistance of $12.8, which is currently trying to sustain the price at a higher level.
However, over the past five days, the Solana coin price has been hovering above the breached trendline, struggling to bolster further growth. Thus, the short body and long wick rejection attached to the daily candle reflect the uncertainty among market participants.
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Anyhow, traders believing the SOL price could rise more ahead could enter the ongoing retest phase, with their stop loss below the $12.8 mark. Thus, with sustained buying, this altcoin could rise 10% higher to challenge the $15 resistance.
The potential breakout from $15 will encourage the price rally to the $18.10 mark.
On a contrary note, a breakdown below $12.8 will undermine the bullish thesis and may push down the price to $11.3 support.
Technical indicator
MACD: the increasing gap between the MACD and the signal line indicates the growing bullish momentum in Solana price. Moreover, these lines are about to break above the midline, providing additional confirmation for long traders.
Bollinger band: the rising Solana coin price hits the upper band of the indicator, which is a sign of rapid rally in the short term. This justifies the needed consolation or pullback before the prices start rising again.
Solana coin price intraday levels
- Spot price: $13.67
- Trend: bullish
- Volatility: High
- Resistance level- $15 and $18.1
- Support level- $12.8 and $11.3
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