Solana Price Analysis: SOL Price is Trapped in Consolidation But the Big Picture Remains Bullish; Buy Today

Solana Price Analysis: The Solana price has remained in a sideways trend for nearly four months now. Amid this consolidation, the traders are strictly following two converging trendlines which project the formation of a bullish flag pattern. This pattern is a well-known bullish continuation pattern that encourages a significant uptrend upon the breakout of its resistance trendline.

Key points

• A bullish crossover from the support trendline may trigger a temporary recovery in the SOL price
• A breakdown below the support trendline of the flag pattern will invalidate the bullish thesis
• The 24-hour trading volume in the Solana coin is $480 Million, indicating a 95.4% gain.

Source-Tradingview

By the press time, the Solana price trades at the $21.26 mark, and with an intraday loss of 2% it retest the support trendline of a flag pattern. The lower price rejection observed in the daily candle reflects the buyers’ continued to defend this support which reflects a possibility of a bullish reversal.

This reversal may trigger a bull cycle within the pattern which encourages a rally to the overhead trendline. Thus, if the buying momentum persists, the Solana price may be nearly 20% of the flag pattern’s resistance trendline.

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Anyhow, until both the aforementioned trendlines are intact the coin holders may witness a sideways. 

However, the most common outcome of the flag pattern is a continuation of the prevailing trendline, and therefore interested traders must for a resistance trendline breakout to witness a sustained rally.

A potential target from the flag pattern completion could be the $40 mark.

Technical indicator

Moving Average Convergence Divergence: Multiple crossovers between the MACD(blue) and signal(orange) accentuate the sideways trend in Solana

Exponential Moving Average:: The 200-day EMA slope wavering around the pattern’s resistance trendline increases the resistance power near this level.

Solana Coin Price Intraday Level

• Spot price: $21.34
• Trend: Bearish
• Volatility: High
• Resistance levels: $23.9 and $27
• Support levels: $21.2 and $20-19.8