Here’s How Descending Triangle Pattern Limits The Solana Coin Recovery

The daily technical chart shows the Solana coin price is in a short-term range-bound rally. Furthermore, this sideways is restricted within the top resistance of $47.4 and bottom support of $26. The coin holders should keep a keen eye on these levels as they will have a significant impact in the near term future.

Key points Solana coin analysis:

• The high wick rejection candles at $34.1 validate it as a strong supply zone
• The Solana price will continue its downward spiral until the resistance trendline is intact
• The 24-hour trading volume in the Solana coin is $1.2 Billion, indicating a 42% gain

Source-Tradingview

The ongoing bear cycle within the aforementioned range has revealed a descending triangle pattern formation. In theory, this bearish continuation pattern triggers a significant boost in selling pressure once the coin price breaks below its neckline support.

Concerning this pattern, the Solana coin chart shows the $30 as the neckline support and a descending trendline as a dynamic resistance. Earlier today, the altcoin showcased a 4% gain and tried to break the $34.5 resistance.

However, the descending trendline intersected at the same level, creating a strong resistance zone for buyers. Moreover, the crypto market faces sudden selling pressure and evaporates the entire intraday gains.

The Solana coin price is currently trading at the $32.84 mark, with a 3.04% loss from yesterday’s closing.

Thus, a strong rejection candle formed at $34.5 resistance indicates the coin price is likely to tumble 9% lower to hit the $30 support. Under the influence of this pattern, the SOL price should eventually break the neckline support and carry the downfall another 12.5% down to reach the June low support of $26.

On a contrary note, a possible breakout from the resistance trendline will indicate a switch in market sentiment and an opportunity for price recovery.

Technical indicator

RSI: the daily-RSI slope shows an evident bullish divergence concerning the price restest to the $30 support. This divergence strengthens the possibility of a bullish recovery. 

Bollinger band indicator: the coin price nosedive below the indicator midline indicates the sellers will remain in charge of price behavior. 

• Resistance level- $34.5 and $38.5
• Support levels- $30 and $26