A descending triangle pattern has emerged on SOL's daily chart, suggesting a potential decline in the altcoin's price in the coming days. If this pattern is confirmed, Solana's price may breach the critical support level at $49.65. Persistent selling pressure could then lead to a retest of the subsequent level at $40 in the short term. In a highly bearish scenario, the altcoin's value could be at risk of plummeting all the way down to $32.70.
This bearish outlook could be disproven if Solana's price remains above $49.65, which coincides with the triangle pattern's base, in the next 72 hours. In that case, traders might view the current level as an attractive buying opportunity, potentially injecting capital into SOL. Subsequently, SOL could attempt to surpass the $70 resistance over the following days. Breaking this threshold could pave the way for Solana's price to surge as high as $100.
It's worth noting that SOL is currently in a bearish trend, as indicated by the daily Moving Average Convergence Divergence (MACD) indicator. In the past 48 hours, the MACD line crossed below the MACD Signal line, a significant bearish signal signifying a shift from a bullish to a bearish trend. Since the MACD line remains below the MACD Signal line and has a negative slope, it suggests that Solana's price may continue to decline in the next 24-48 hours.
Despite the bearish trend, bulls are putting up a fight to defend the $49.65 support level. The daily Relative Strength Index (RSI) is trending positively toward overbought territory. This can be seen as a positive sign, indicating potential growing buyer strength. However, traders may prefer to wait for the RSI line to cross above the RSI Simple Moving Average (SMA) line before considering a long position in the cryptocurrency. Such a crossover could serve as a strong signal of a favorable shift in the altcoin's momentum.
This bearish outlook could be disproven if Solana's price remains above $49.65, which coincides with the triangle pattern's base, in the next 72 hours. In that case, traders might view the current level as an attractive buying opportunity, potentially injecting capital into SOL. Subsequently, SOL could attempt to surpass the $70 resistance over the following days. Breaking this threshold could pave the way for Solana's price to surge as high as $100.
It's worth noting that SOL is currently in a bearish trend, as indicated by the daily Moving Average Convergence Divergence (MACD) indicator. In the past 48 hours, the MACD line crossed below the MACD Signal line, a significant bearish signal signifying a shift from a bullish to a bearish trend. Since the MACD line remains below the MACD Signal line and has a negative slope, it suggests that Solana's price may continue to decline in the next 24-48 hours.
Despite the bearish trend, bulls are putting up a fight to defend the $49.65 support level. The daily Relative Strength Index (RSI) is trending positively toward overbought territory. This can be seen as a positive sign, indicating potential growing buyer strength. However, traders may prefer to wait for the RSI line to cross above the RSI Simple Moving Average (SMA) line before considering a long position in the cryptocurrency. Such a crossover could serve as a strong signal of a favorable shift in the altcoin's momentum.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.