Is SOL Price Poised for a Comeback? Charts Indicate $30 is in Sight

Over the two months, the Solana price has witnessed relentless downslide, skidding from a peak of $32.13 to its current berth at $18.3. This translates to a staggering 43% erasure in value. Interestingly, this entire corrective phase strictly resonated within two converging trendlines, painting the picture of a descending wedge formation. Historically, such patterns have often been precursors to sizable bullish thrusts post a breakout from the upper resistance. However, Is Solana ready for a bullish pivot, or is further tumult on the cards?

Also Read: SOL Price Under Pressure Amid FUD of Solana Liquidation By FTX

A falling Wedge Pattern Offers an Opportunity for a bullish reversal 

• The falling SOL Price may witness high demand pressure at $16
• A bullish breakout from the overhead trendline could kick-start a fresh recovery rally.
• The 24-hour trading volume on the Solana coin is $411.5 Million, indicating a 0.11% gain.

Source-Tradingview

A spark of hope has been lit today, as the SOL price registers an intraday leap of 3.5%, propelling it toward the upper boundary of the wedge pattern. However, this very zone has proven to be a formidable barrier in recent times, rejecting upward price actions on three separate occasions.

The trendline has become a hotspot where traders seem to be swayed by considerable selling pressures. Now, with the crypto-sphere buzzing about humours of FTX bankruptcy hearings, Solana might just find itself in the firing line once more, rejected by this trendline resistance. If the bearish momentum gains traction, this altcoin could fall another 11%, targeting the $16.5 price region.

However, those with a bullish inclination should wait for a breach of the aforementioned resistance. A breakout rally might just propel Solana toward the potential target of $22.21, followed by the $25.43 or $32 mark.

[converter id=”sol-solana” url=”https://coingape.com/price/converter/sol-to-usd/?amount=1″]

Will SOL Price See A Major Correction?

Taking a look at the bigger picture, a price decline to $16 would bring the Solana coin to a crucial support trendline of a rising channel pattern that has been shaping its trajectory for the past seven months. As long as this support remains unbreached, it acts as Solana’s safety net, preventing any catastrophic declines.

• Exponential Moving Average: The 20-day EMA slope offers constant resistance in an ongoing downtrend.
• Moving Average Convergence Divergence: A bearish alignment between the MACD(blue) and signal(orange) reflects the selling momentum in active.