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Solana Price Analysis: Will Triangle Pattern Dump SOL Price To $22 Mark?

Solana

Published June 4, 2022

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The Solana(SOL) price has been resonating within a descending triangle for nearly two weeks, teasing a resumption of the prevailing downtrend. However, some indicators reflect growth in bullish momentum, suggesting a considerable possibility for a bullish breakout. 

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Key points

  • The potential breakdown from the triangle pattern may tumble the SOL price by 40%
  • The 20 DMA assists sellers in maintaining the descending triangle pattern
  • The 24-hour trading volume in the Solana coin is $1.63 Billion, indicating a 17.8% loss

SOL/USDT ChartSource-Tradingview

After the downfall we saw starting in the early days of April, the bearish spiral trapped the SOL prices under huge selling pressure. As a result, the bears depreciated the market value by 70% within the last two months to take support at $38.

Thus, the buyers capitalized on the halt in the downtrend to retest the overhead resistance at $60, but the bullish failure to surpass it led to a descending triangle pattern. 

Currently, the Solana market price trends lower under the influence of a resistance trendline and struggle to take support at the $38 base.

Therefore, the $38 support level fallout will increase the bearish spiral with high momentum to reach the next support level at $24.

Alternatively, the bullish breakout of the resistance trendline will lead the rally to $50.

Anyhow, the traders must wait for a breakout candle on either side to find a closing beyond certain levels.

Technical indicator

The Fast-moving 20-DMA had caught up to SOL price and mounted an additional barrier for coin buyers.  Thus, a simultaneous break out from descendant and 20 DMA could provide additional confirmation for long buyer’s

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However, contrary to the downtrend, the MACD indicator shows a steady rise in bullishness, indicating an increased triangle breakout.

  • Resistance level- $38 and $22
  • Support levels- $60 and $77

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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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