The Solana (SOL) Price Holds Support at $18
The price of Solana (SOL) has recently seen a slight increase, confirming the $18 horizontal area as a strong support level. The price is currently trading within a long-term range between $18 and $32.
Solana Breaks Resistance and Finds Support
Looking at the weekly timeframe, SOL has experienced significant growth since the start of the year. It broke out from both the $18 horizontal area and a long-term descending resistance trendline that had been in place for 600 days. If the price retraces, these levels are expected to act as support.
A Range is Formed Between $18 and $32
After breaking out, SOL reached a high of $32 before retracing. The $27 area acted as resistance. However, the price bounced off the $18 horizontal support area in September, confirming it as support. This movement has created a range between $18 and $32, where price consolidation occurs before a decisive breakout.
Weekly RSI Indicates Bearish Momentum
The weekly Relative Strength Index (RSI) is currently leaning bearish. An RSI above 50 during an uptrend is considered bullish, while below 50 is bearish. The RSI rejection at the 50 trendline suggests a bearish trend for SOL.
Daily Breakout Could Drive Price Increase
On the daily timeframe, SOL’s price is more decisively bullish for two reasons. Firstly, it rebounded on September 11, confirming a long-term upward support trendline and coinciding with the bounce off the $18 horizontal support area. Additionally, on September 18, SOL broke out of a descending wedge pattern, signaling a potential bullish trend. The daily RSI has also broken its downward resistance trendline, further supporting the bullish outlook.
Upward Momentum with Potential 40% Increase
The combination of SOL’s price breakout and the RSI breakout suggests that the upward momentum is likely to continue. This could lead to a potential 40% increase in price. However, if the ascending support line is breached, a 25% decline to around $14 is possible.
Hot Take: Solana’s Price Outlook
The price of Solana (SOL) has shown strength by holding support at $18 and breaking through long-term resistance levels. While the weekly RSI indicates bearish momentum, the daily timeframe presents a more decisively bullish outlook. With a potential 40% increase in price, it’s important to monitor the ascending support line for any breaches that could lead to a decline. Overall, SOL’s price action suggests continued upward momentum in the near term.
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