Bullish Pattern Protects Solana Price Amid Market Correction; Is This the Right Time to Buy?

The Solana price has remained in a correction phase for nearly a month now. Amid this downfall, the coin price plunged from the peak of $26.1 to the current price of $20.43, recording a loss of 24.15. Moreover, the falling price is strictly resonating between two trendlines showcasing the formation of a falling wedge pattern. Despite the broader market sell-off, the SOL price is respecting this pattern structure and gives a better understanding of possible price movement.

Key points

• A potential breakout from the wedge pattern will signal the end of the correction phase
• A bearish crossover between the 20-and-100-day EMA may increase selling orders in the market
• The 24-hour trading volume in the Solana coin is $388.2 Million, indicating a 15.5% loss.

Source-Tradingview

While the crypto market witnessed an aggressive downfall in the last few days, the Solana price has been moving sideways above the combined support of $19.7 and a lower trendline of a falling wedge pattern. 

Moreover, the sideways movement also displays lower price rejection candles indicating the buyers are actively defending the aforementioned supports. These reversal signs suggest the prices are likely to rise 5% in the near future and hit the pattern’s overhead trendline.

Also Read: Best Cryptos Private Sale For 2023

Under the influence of this pattern, the Solana price should breach the resistance trendline as a sign of uptrend resumption. With sustained buying, the buyers could drive the prices 28-30% higher to hit the $28.14-$26.78 resistance zone.

However, if the market sentiment remains bearish, the Solana price may continue to consolidate with the wedge pattern before a genuine breakout.

Technical Indicator

Moving Average Convergence/Divergence: The MACD(blue) slope moving below the signal(orange) accentuates the downtrend momentum in the Solana price 

Exponential Moving Average: The daily EMAs(20, 50, and 100) moving near the $22 mark create a resistance zone of traders.

Solana Coin Price Intraday Level

• Spot price: $20.39
• Trend: Bullish
• Volatility: Medium
• Resistance levels: $23.8 and $26
• Support levels: $19.7 and $16