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Solana Price Analysis: Wedge Breakout may Bring Relief rally in SOL Price

Solana to focus on gaming, Defi and NFTs

Published June 6, 2022

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Last week the Solana outage bolstered the bear cycle inside the falling wedge pattern and plunged it to a May 12th low of $38. However, the high demand pressure below this level reverted the price higher, hitting the overhead resistance trendline. A bullish breakout from the wedge pattern may soar the SOL price to 40% higher.

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Key points

  • The 20 DMA assists sellers in extending the falling wedge pattern
  • The SOL price nearing the apex of the wedge pattern may soon trigger a decisive breakout
  • The 24-hour trading volume in the Solana coin is $1.79 Billion, indicating an 84% gain

SOL/USDT ChartSource-Tradingview

In April, a V-top reversal plunged the Solana(SOL) price to monthly support of $78.2. However, submitting to the outraged selling in May, the coin traders lost this foothold and continued the downfall to a low of $36.

Amid the ongoing uncertainty in the crypto market, the selling pressure has decreased, but the price follows a slow and steady fall. Thus, the declining price has shaped into a falling wedge pattern, suggesting a reversal opportunity.

On June 4th, the SOL price rebounded from the $37.5 level, indicating the traders are respecting the new support. Today, the altcoin is up by 12%, and the long bullish candle teases to breach the overhead resistance trendline.

A falling wedge pattern is known to initiate a strong upside movement as the price knocks out the overhead resistance. Thus, if SOL buyers complete this pattern, the altcoin should rise 40% to reach the $60 psychological level.

On the other hand, unexpected fallout from the support trendline and $37.5 may extend the downtrend to the July 2021 bottom support of $22.2

Technical indicator

Some traditional pivot level aligned with horizontal chart level increases the weightage of those areas of interest. For example, the chart shows pivot-S1 in confluence with the $22.2 mark, R1 with $81.8, and Pivot(P) with $60. 

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The Vortex indicator maintains a significant gap between the bearishly aligned VI+ and VI- slope, indicating sustained selling momentum.

  • Resistance level- $48 and $60
  • Support levels- $38 and $22.2

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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