The Solana price has been in a correction phase for nearly a month now, falling from its peak of $26.1 to the current price of $20.43, representing a loss of 24.15%. This decline is strictly resonating between two trendlines, indicating the formation of a falling wedge pattern. Interestingly, despite the broader market sell-off, the Solana price is respecting this pattern structure, providing a better understanding of possible price movement.
A potential breakout from the wedge pattern would signal the end of the correction phase. On the other hand, a bearish crossover between the 20-and-100-day EMA may lead to an increase in selling orders in the market. The 24-hour trading volume in Solana is down 15.5% at $388.2 million.
While the crypto market has experienced a significant downturn in recent days, the Solana price has remained relatively steady above the combined support of $19.7 and the lower trendline of the falling wedge pattern. The sideways price movement, coupled with lower price rejection candles, suggests that buyers are actively defending these support levels. These reversal signs indicate a potential 5% price increase in the near term as the pattern’s overhead trendline is tested.
Guided by this pattern, the Solana price should breach the resistance trendline, signaling an uptrend resumption. With continued buying, the price could soar 28-30% higher to reach the $28.14-$26.78 resistance zone. However, if market sentiment remains bearish, the Solana price may continue to consolidate within the wedge pattern before a genuine breakout occurs.
Key technical indicators include the Moving Average Convergence/Divergence (MACD) and Exponential Moving Average (EMA). The MACD’s blue slope moving below the orange signal accentuates the downtrend momentum in the Solana price. Meanwhile, the daily EMAs (20, 50, and 100) moving near the $22 mark create a resistance zone for traders.
Currently, Solana’s price stands at $20.39, with a bullish trend and medium volatility. The resistance levels are at $23.8 and $26, while the support levels are at $19.7 and $16. As the market unfolds, investors are advised to conduct thorough market research before investing in cryptocurrencies, as neither the author nor the publication holds responsibility for personal financial loss.
Source: Coingape
