Crypto News- The recent performance of Solana (SOL) has seen some noteworthy developments. SOL found strong support at a key long-term level and subsequently broke through a short-term descending resistance trendline.
Solana’s September Price Trends: Can This Week Alter the Course?
On the weekly timeframe, the overall trend appears to be uncertain, but there’s a more optimistic outlook when we delve into the daily chart.
A closer examination of SOL’s weekly chart reveals a downward trajectory since reaching its peak of $32.13 in July. This descent led to a low point of $17.33 on September 11. However, SOL rebounded from this low, initiating an upward move (indicated by the green arrow). Just as a previous price drop confirmed the $28 level as a formidable resistance zone, this recent rebound has firmly established the $18 horizontal level as robust support.
If Solana’s price manages to sustain its upward momentum, there’s a potential for a 40% increase, aiming for the resistance at $28. Conversely, if the price slips below $18, it could experience a 30% decline, potentially reaching the descending resistance line at $14.
The weekly Relative Strength Index (RSI) currently provides an inconclusive signal. The RSI is a tool employed by many traders to gauge momentum and identify overbought or oversold conditions, aiding them in their trading decisions. Typically, a move above the 50 level with a clear upward trajectory in the RSI indicates a preference for bullish sentiment. Conversely, a drop below 50 suggests bearish sentiment. At present, the RSI is making an attempt to cross the 50 mark (as indicated by the red circle), which, if successful, could signal a bullish trend and bolster the potential upward movement toward the $28 resistance. However, this breakthrough has yet to materialize.
It’s worth noting that Anatoly Yakovenko, co-founder of the Solana network, has urged the U.S. government to support cryptocurrency innovation without waiting for perfect regulations. Additionally, the upcoming FTX asset liquidation involving $1.16 billion worth of SOL tokens could potentially exert significant selling pressure on the market.
Daily Chart Presents Bullish Signals:
While the weekly timeframe retains an air of uncertainty, the daily chart offers a more optimistic perspective for SOL, driven by two key factors.
Firstly, on September 11, SOL found solid support at a critical long-term ascending support line, coinciding with the established $18 horizontal support area.
Following this bounce, SOL broke out of a descending wedge pattern on September 18, a bullish signal that could mark the beginning of a fresh upward trajectory.
Furthermore, the daily RSI has broken free from its descending resistance trendline (indicated in green). This breakout is an encouraging sign suggesting a potential shift in the trend. Combined with SOL’s breakout, it points to a likelihood of sustained upward movement towards the upper range.
Despite this optimistic SOL price analysis, it’s essential to note that a breakdown from the ascending support line could result in a 30% drop towards the long-term descending resistance line, situated near $14.
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