SOL Bounces, but Fails to Confirm Bullish Trend

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In Brief
  • There is horizontal support at $23 and resistance at $36.50.

  • SOL has broken out from a short-term descending resistance line.

  • SOL/BTC is trading above support at 76,000 satoshis.

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Solana (SOL) has been increasing since bouncing, on May 23, and creating a long lower wick. 

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While it has shown numerous bullish reversal signs, it has yet to confirm the bullish trend reversal.

Ongoing SOL correction

SOL has been falling since it reached an all-time high price of $53.58, on May 18. The decrease continued until May 23, culminating with a low of $19.10.  

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The price bounced afterwards and is in the process of creating a higher low on May 30 (green icon). 

Technical indicators are neutral. While both the RSI and MACD are showing bullish reversal signs, the Stochastic oscillator is still falling. 

The main support area is at $23, created by the 0.618 Fib retracement level. It is also a horizontal support level.

Chart By TradingView

Short-term movement

Cryptocurrency trader @TradingTank tweeted a SOL chart, stating that it has a good-looking setup, due to the reclaim of a horizontal support area.

Source: Twitter

On top of this, SOL has also broken out from a descending resistance line, further implying that the trend is turning bullish. In addition, the RSI has broken out above 50 (green icon). 

The main resistance area is found at $36.50. If successful in moving above it, the token could increase all the way to $49 and potentially move towards a new all-time high. 

Firstly, the reclaim of the $36.50 area is crucial, since besides creating a bullish structure, it would also turn daily indicators bullish.

Chart By TradingView

SOL/BTC

The SOL/BTC chart is relatively similar to its bullish counterpart. It bounce at the 76,000 satoshi support area, after deviation below it.

Similarly, technical indicators are neutral and the token has created a higher low. Therefore, the potential to create a bullish structure is there. However, the reversal is not confirmed yet.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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