Solana Price Analysis: Will Triangle Pattern Dump SOL Price To $22 Mark?

The Solana(SOL) price has been resonating within a descending triangle for nearly two weeks, teasing a resumption of the prevailing downtrend. However, some indicators reflect growth in bullish momentum, suggesting a considerable possibility for a bullish breakout. 

Key points

• The potential breakdown from the triangle pattern may tumble the SOL price by 40%
• The 20 DMA assists sellers in maintaining the descending triangle pattern
• The 24-hour trading volume in the Solana coin is $1.63 Billion, indicating a 17.8% loss

Source-Tradingview

After the downfall we saw starting in the early days of April, the bearish spiral trapped the SOL prices under huge selling pressure. As a result, the bears depreciated the market value by 70% within the last two months to take support at $38.

Thus, the buyers capitalized on the halt in the downtrend to retest the overhead resistance at $60, but the bullish failure to surpass it led to a descending triangle pattern. 

Currently, the Solana market price trends lower under the influence of a resistance trendline and struggle to take support at the $38 base.

Therefore, the $38 support level fallout will increase the bearish spiral with high momentum to reach the next support level at $24.

Alternatively, the bullish breakout of the resistance trendline will lead the rally to $50.

Anyhow, the traders must wait for a breakout candle on either side to find a closing beyond certain levels.

Technical indicator

The Fast-moving 20-DMA had caught up to SOL price and mounted an additional barrier for coin buyers.  Thus, a simultaneous break out from descendant and 20 DMA could provide additional confirmation for long buyer’s

However, contrary to the downtrend, the MACD indicator shows a steady rise in bullishness, indicating an increased triangle breakout.

• Resistance level- $38 and $22
• Support levels- $60 and $77

The post Solana Price Analysis: Will Triangle Pattern Dump SOL Price To $22 Mark? appeared first on CoinGape.

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• Source: https://coingape.com/markets/solana-price-analysis-will-triangle-pattern-dump-sol-price-to-22-mark/