Here’s How Solana Coin May Resume Its Prior Recovery; Enter Now?

Over the last two weeks, the Solana coin price witnessed a steady downfall in the daily time frame. The coin price is showcasing a series of lower highs and lower lows formation within the two downsloping trendlines. However, this correction phase is part of a famous bullish continuation pattern called the ‘Flag pattern’ and may offer significant growth upon its completion.

Key Points

• During flag pattern formation, a bullish breakout from the overhead trendline is often interpreted as a sign that the prior uptrend is likely to resume.
• The SOL price is obtaining strong support from the $20 footing
• The 24-hour trading volume in the Solana coin is $812.2 Million, indicating a 217% gain.

Source-Tradingview

The flag pattern is typically seen as a bullish continuation pattern, which implies that after a sharp price rally, the market may be due for a period of consolidation or correction. This period of consolidation is essential for the coin price to recuperate the bullish momentum and is represented by the “flag” portion of the pattern.

In the last two weeks, the Solana coin has tumbled 22.76% and reached the current price of $20.5. As of now, local support is holding up the SOL price and preventing further downfall. However, until this pattern is intact the coin price may prolong the ongoing downfall.

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Furthermore, the sidelined traders looking for a long entry opportunity should wait for a breakout from the overhead trendline. This breakout will signal replenished bullish momentum and a higher probability for recovery continuation.

In ideal bullish conditions, this breakout could drive the SOL price to the November 2022 peak of $36.68.

Technical Indicator

RSI: the daily-RSI slope breakdown from the midline accentuates the selling pressure is currently high.

EMAs: the 20-day EMA slope is flipped into a resistance assisting sellers in extending the ongoing correction.

Solana Coin Price Intraday Level

• Spot price: $20.55
• Trend: Bearish
• Volatility: Medium
• Resistance levels: $22.6 and $26.7
• Support levels: $20 and $18