The reversal rally in the (Solana)SOL price struggles to sustain above the EMAs despite the support of the psychological barrier at $100. Will the psychological barrier push forth the bullish rally, or is it just another pretense for a sideways trend?
Key points
- The daily-RSI slope drops back to bearish territory
- The SOL price would retest the 100 psychological support
- The 24-hour trading volume in the Solana coin is $1.8 Billion, indicating a 7.9% gain
Source-Tradingview
Solana (SOL) price formed a falling wedge pattern in the first quarter of 2022, resulting in a 35% fall and reaching the $78 mark. However, the buyers overtook trend control resulting in a bullish breakout of the falling wedge.
The breakout rally reached the $136 mark accounting for inflation of 62% within a fortnight and breaking above the 100 and 50-day EMA. But the bullish failure to reach the $150 mark brought higher price rejection candles into existence, resulting in a bearish reversal.
The reversal rally broke multiple support levels retesting the psychological barrier at $100, which unleashed the trapped momentum with a double bottom breakout.
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However, the recent daily candle reflects a significant selling observed at $108, resulting in a solid bearish candle.
Hence, closing below the psychological mark of $100 will reinstate a bearish trend and induce a fall to $88.
In an otherwise bullish scenario, closing above $108 will ensure a price jump to $122.
Technical indicator
The downsloping 100-SMA has flattened, suggesting a sideways rally in AAVE price. In addition, the 50-and-100 SMA aligned with the $100 support strengthened the bottom support defense.
The RSI slope barely made it to the bullish territory when the prevailing sell-off dumped it below the neutral line. Moreover, the slope approaches the 14-SMA line, and a follow-up breakdown would accelerate the selling momentum.
- Resistance level- $108 and $122
- Support levels- $100 and $88
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