SOL Technical Analysis: Forming a Descending Triangle Pattern, Taking Support Near $150

Ankita  |  Sep 16, 2021

Solana has contributed a number of innovations to the discussion, including the proof-of-history consensus (PoH) developed by Anatoly Yakovenko. The blockchain is known to cryptocurrency investors for its incredibly fast processing times. Solana's hybrid protocol allows for a significant reduction in validation times, both for transactions and smart contracts. Let us look at the technical analysis of SOL.

Past Performance

On September 09, 2021, SOL opened at $209.47. As of September 13, 2021, the closing price of SOL was $159.28. Thus, in the past week, the SOL price has been very volatile and has given a very strong movement. In the last 24 hours, SOL has traded between $153.06-$166.18.

TradingView Chart

SOL Technical Analysis

Looks like the SOL’s steam has come to an end. In the past few weeks, SOL rallied up to its all-time highs. SOL short squeezed millions and millions of traders (short-sellers). The word in the community was “never short SOL” after a very popular TV series, “Better Call Saul.” However, it seems to have been changing now.

SOL is trying to retest the gap it left behind when it was rallying. In the meantime, SOL has attracted institutional interest as well, due to its lightning-fast processing time. Let us see what the indicators are suggesting for the day ahead and tomorrow;

At the time of press, SOL is trading at $157.43. The price is up by approximately 1% from the opening price. Thus, indicating buying pressures are slightly high in the market and forming a bullish candle for the day. Moreover, it is forming a descending triangle pattern and taking support at the $149-$150 zone.

On the daily chart, the MACD and signal lines are above the zero range. However, the MACD line over the Signal line is forming a bearish crossover. Thus, the overall momentum in the market seems to be losing its grip, and we can expect a price to fall for the day.

However, if buying pressure takes over the selling pressure, we might witness a clear breakout on the upside. Then, the price can test the resistance at $166.45.

The RSI on the daily chart is near to the overbought zone and has broken its long-term support at 70% mark. Currently, RSI is at 64.19%. It has fallen from the 88% mark and creating a bearish divergence.

Thus, indicating that the selling pressure is mounting up in the market, and is taking over the buying pressure. Hence, for the rest of the day, we can expect the price to fall until the RSI is above the support level.

Day-Ahead and Tomorrow 

SOL is trading above the Fibonacci pivot support level of $148.24, which has acted as strong support. We can expect a retest at this pivot level, however, if the selling pressure remains the same, the price might break the support to fall more. Here, an opportunity for a short position arises.

The price has tested and fallen from the FIB retracement level of $166.27. If the price rises above this FIB extension level in some time, this implies that the price uptrend is strong. In that case, the price upswing is likely to continue tomorrow as well. Then, traders can go long by keeping the target of level $182 and stop-loss at $149.

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