Solana Price Analysis: Will SOL Sustains Gains Above $42.0?

Source : coingape.com

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Published 31 mins ago

Solana’s price analysis shows the bullish outlay for the day. SOL started the session on a lower note although extending the previous day’s gains. It scaled up to the highs before retracing toward $42.0.

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SOL bulls took a breather near and gravitate toward the level. SOL buyers managed to flip the support into a resistance level. As per the Solana price analysis, we expect the price to breach the resistance and produce further gains.

  • SOL extends the previous week’s gain and opened the new trading week on a higher note.
  • A decisive break above the will produce more gains in the price.
  • Support is present near $40.0 if broken would add on more selling pressure.

SOL price extends gains

Source: Trading view

On the daily chart, the price is trading in a rising channel but with a twist. The price is making higher lows, with lower highs, indicating accumulation forming inside a trading range

This could be better explained as SOL forming a “Volume Contraction pattern”. The key to this pattern is that there needs to be a contraction of volatility as the chart moves from the left to the right.

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This highlights that the trading volume is reducing and becoming scarce. In addition, the more dramatic volume the more likely that the move will be explosive. 

The price is trading in a tight range of symmetrical triangle pattern”. There is a higher probability of giving a breakout on the higher side, with an expected first upside target at $48. 

The RSI (14) is trading above 50, indicating that the average gain is larger than the average loss. It is a bullish indication.

On the other hand, a break below the $40.80 level could invalidate the bullish outlook. And the price could test $38 on the lower side.

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As of publication time, SOL/USD is trading at 43.01, up 4.36% for the day. The 24-hour trading volume is standing at $1,097,271,150 with 86% gains according to CoinMarketCap data.

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Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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