Amid the recent correction in the crypto market, Solana’s falling price has been resonating between two converging trendlines, forming a falling wedge pattern. At its core, this chart setup indicates a gradual decrease in bearish momentum, eventually offering trend control in the hands of buyers. A bullish breakout from this pattern could signal the end of the prevailing correction phase or the beginning of a new recovery rally. In the past, Solana (SOL) has demonstrated strong performance, along with Fantom (FTM) and Collateral Network (COLT), as investor favorites.
A bullish breakout from the long-coming resistance trendline signifies a shift in market sentiment, transitioning from selling on rallies to buying on dips. A potential rally in Solana’s price could face overhead supply at $21.7 and $24, with the 24-hour trading volume reaching $277.5 Million, marking a 148% gain.
On May 25th, Solana’s price experienced a massive breakout from the resistance trendline of the wedge pattern. Following multiple rejections from this dynamic resistance over the last five weeks, this breakout suggests that sellers’ weapon has been breached, and buyers can now wrestle to take trend control. At present, Solana’s price trades at $20.67, with an intraday gain of $1.17, indicating aggressive bullish momentum and adding more conviction for coin holders.
Nonetheless, the price encountered a minor pullback, retesting the breached trendline as potential support. If buyers can maintain their position above the reclaimed trendline, the potential rally might reach the $26 mark, suggesting a growth potential of 26%.
The completion of the wedge pattern could set the Solana price for significant recovery, but every swing high during the pattern formation serves as a valid target for buyers after the breakout. Therefore, Solana’s price might face hurdles at $21.25 and $24 before hitting the $26 high.
The Moving Average Convergence Divergence (MACD) indicates a bullish crossover between the blue MACD line and the orange signal line, projecting a sign of trend reversal. Meanwhile, the Exponential Moving Averages (EMAs) reveal that the 50-day and 100-day EMA at the $21.17 mark create a high supply zone against buyers.
It is crucial to conduct thorough market research before investing in cryptocurrencies, as the presented content primarily reflects the author’s personal opinion and is subject to market conditions. The author or the publication does not hold any responsibility for potential personal financial loss.
Source: Coingape
