SOL coin’s trapped momentum within the triangle pattern will soon breakout. Thus, generating a great opportunity for traders.
Solana is a popular cryptocurrency exchange due to the swift processing times offered by the blockchain. Solana’s hybrid protocol significantly reduces transaction validation times and allows smart contract execution to be completed in significantly shorter time frames.
Solana also attracts a lot of institutional interest due to its lightning-fast processing times. Let us now look at the technical analysis of Solana cryptocurrency.
Past Performance of SOL
Solana price action projects a symmetrical triangle formation after the solid bull run in the daily chart. Moreover, the price action is making higher lows after finding demand near the 50% Fibonacci Retracement level near $120. Thus, generating the support trend line of the triangle.
The triangle formation has trapped a considerable momentum within. Thus, a breakout of either side could be massive.
SOL Technical Analysis
As of writing, SOL cryptocurrency was at $160. The cryptocurrency has also decreased 1.66% in the past 24 hours. The fall has the support of a dramatic rise in selling pressure, evident by an increase of 24% in intraday trading volume.
The daily chart’s Pivot Points (Traditional, Quarterly) suggest that the SOL coin price could face resistance at the $265 mark if it sustains above $200. However, if the trend breaks below the support trend line, the price could find support at the $120 or $95 mark.
MACD and signal lines are both above the zero line on the daily chart. Moreover, the bullish crossover of fast and slow lines is about to happen. Hence, MACD generates a buy signal.
The RSI indicator trades considerably higher into the neutral spectrum at 55% on the daily technical chart. As a result, RSI indicates a slightly bullish signal despite the previous fall below the central line.
Due to the triangle formation, the ADX indicator predicts a fall in price trend momentum. However, as mentioned before, a breakout of either side could release the trapped momentum.
According to the Solana technical analysis, the technical overview is turning bullish on SOL crypto. However, the breakout of the triangle formed in the daily chart will decide the future trend. Hence, safe traders must maintain patience till the pattern comes to its fruition.
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