The Solana price has been moving sideways for nearly four months, with traders closely following two converging trendlines that suggest a bullish flag pattern formation. This pattern is widely recognized as a bullish continuation pattern that usually triggers a significant uptrend upon breaking through its resistance trendline.
A bullish crossover from the support trendline could prompt a temporary recovery in the SOL price, but a breakdown below the support trendline would invalidate the bullish outlook. The 24-hour trading volume for Solana coin stands at $480 million, indicating a 95.4% increase.
At press time, Solana price traded around the $21.26 mark, with an intraday loss of 2% retesting the support trendline of the flag pattern. The lower price rejection observed in the daily candle demonstrates that buyers continue to defend this support, indicating a possible bullish reversal. This reversal could trigger a bullish cycle within the pattern, potentially leading to a rally to the overhead trendline. If the buying momentum holds, the Solana price could approach the flag pattern’s resistance trendline nearly 20%.
On the other hand, as long as the mentioned trendlines remain intact, coin holders may experience a sideways movement. However, it’s crucial to note that the most common outcome of a flag pattern is a continuation of the prevailing trendline. Thus, traders should await a breakout from the resistance trendline to witness a sustained rally. A potential price target upon the completion of the flag pattern could be around the $40 mark.
Among the technical indicators, the Moving Average Convergence Divergence (MACD) reflects the sideways trend in Solana due to multiple crossovers between the MACD (blue) and signal (orange) lines. Additionally, the 200-day Exponential Moving Average (EMA) slope, wavering around the pattern’s resistance trendline, may increase the resistance power near this level.
For intraday Solana coin price levels, the current spot price is at $21.34, with a bearish trend and high volatility. Resistance levels sit at $23.9 and $27, while support levels are at $21.2 and a range of $20-19.8.
It is essential to remember that the presented content includes the personal opinion of the author and depends on market conditions. Always conduct thorough market research before investing in cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial losses.
Source: Coingape
