The Solana (SOL) Price Breaks Out and Shows Bullish Signs
The price of Solana (SOL) recently found support at a long-term level and broke out from a shorter-term descending resistance line. Although the weekly timeframe doesn’t confirm the direction of the trend, the daily timeframe suggests a bullish outlook.
Solana Price Bounces at Range Low
An analysis of SOL’s chart on a weekly time frame reveals a decline in price since its peak in July. However, the price has rebounded and is now on an upward trajectory. The $18 level has been confirmed as a support area.
If the upward momentum continues, there is potential for a 40% increase towards the $28 resistance level. On the other hand, if the price drops below $18, it could see a further 30% decline to the descending resistance line at $14.
The weekly Relative Strength Index (RSI) is currently undetermined. Traders often use RSI as a momentum indicator to make buying or selling decisions. The RSI is attempting to cross the 50 mark, which would confirm a bullish trend towards the $28 resistance area.
Will Breakout Lead to Range High?
While the weekly timeframe remains uncertain, the daily timeframe shows bullish signs. SOL bounced on September 11, validating a long-term ascending support line. Additionally, it broke out from a descending wedge pattern on September 18, indicating a potential new upward movement.
The daily RSI has also broken out from its descending resistance line, further supporting the idea of a changing trend. When combined with the breakout from the descending wedge pattern, this suggests that the increase in SOL price is likely to continue towards the range high.
Hot Take: Solana’s Potential for Growth
Despite the potential for a bullish trend, a breakdown from the ascending support line could lead to a 30% drop to the long-term descending resistance line at $14. It’s important to monitor these levels and indicators to assess the future direction of SOL price.
It’s worth noting that Anatoly Yakovenko, co-founder of the Solana network, has urged the US government to support cryptocurrency innovation without waiting for perfect regulations. Additionally, the upcoming FTX asset liquidation involving $1.16 billion worth of SOL tokens may exert significant selling pressure on the market.
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