Crypto Analysis: Solana (SOL) Shows Promising Signals Amidst Volatility

Crypto Analysis: Solana (SOL) Shows Promising Signals Amidst Volatility

Crypto News – Over the last three weeks, the price of Solana (SOL) has shown a slight yet consistent increase, confirming the $18 level as a strong support area. SOL has been trading within a long-term horizontal range between $18 and $32, marking significant price boundaries.

Solana’s current position indicates stability above the lower range, affirming a positive trajectory based on weekly timeframe technical analysis throughout this year. The price surge saw a breakout from both the $18 horizontal support and a long-standing descending resistance trendline that had held for 600 days. It’s likely that both these levels will act as support should the price retrace.

Following the breakout, SOL achieved a high of $32 before experiencing a decline, confirming the $27 region as a formidable resistance. Notably, at the onset of September, Solana’s price retraced to the $18 horizontal support and rebounded, affirming its strength.

This movement has delineated a trading range for SOL, spanning from $18 to $32. In such ranges, price consolidation occurs within the high and low limits, anticipating a significant breakout.

Analyzing the weekly Relative Strength Index (RSI), a bearish trend is observed. In trading, RSI serves as a crucial tool for investors to gauge momentum for informed trading decisions. An RSI above 50 during an uptrend is viewed as favorable by bullish investors, while a figure below 50 is considered bearish. The RSI trendline at 50 (marked in red) has rejected the indicator and is declining, indicating a bearish trend.

SOL Price Prediction: Daily Breakout Might Trigger a Surge

Contrary to the uncertain weekly timeframe, the daily analysis presents a decisively bullish outlook for SOL based on two key factors. Firstly, on September 11, the cryptocurrency experienced a rebound (indicated by a green icon), confirming the presence of a long-term upward support trendline. This rebound aligned with the bounce at the $18 horizontal support area.

Furthermore, on September 18, SOL’s price broke out of a descending wedge pattern, a typically bullish signal that could potentially initiate a new upward trend.

Moreover, the daily Relative Strength Index (RSI) has surpassed its downward resistance trendline (green). This RSI breakout signifies a changing trend.

When combined with SOL’s price breakout, it indicates a likely continuation of upward momentum, potentially leading to a 40% increase.

However, it’s important to exercise caution, as breaching the ascending support line could result in a 25% decline, potentially bringing SOL down to the long-term descending resistance line around $14.