The price of Solana also trades inside a long-term horizontal range between $18 and $32.
Solana Hovers Above Range Low
The weekly time frame technical analysis for SOL shows that the price has increased considerably since the beginning of the year.
During the increase, it broke out from both the $18 horizontal area and a long-term descending resistance trendline, which had been in place for 600 days.
Both the area and the trendline will likely provide support if the SOL price returns to them.
After the breakout, SOL reached a high of $32 before falling, validating the $27 area as resistance. At the beginning of September, the Solana price returned to the $18 horizontal area and bounced (green icon), validating it as support.
This movement has created a range between $18 and $32. In such ranges, the price consolidates between the range high and low before an eventual decisive movement outside of it.
The weekly Relative Strength Index (RSI) is leaning bearish. In the trading world, the RSI is pivotal in helping investors identify momentum to make informed asset buying or selling choices. Bulls find an RSI above 50 during an uptrend to be a positive sign, while a figure below 50 is considered bearish.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. The 50 trendline (red circle) rejected the indicator and has fallen, both signs of a bearish trend.
SOL Price Prediction: Daily Breakout Can Catalyze Increase
Unlike the weekly timeframe, which is undetermined, the daily one is more decisively bullish for two reasons.
Firstly, on September 11, the cryptocurrency experienced a rebound (green icon), confirming the presence of a long-term upward support trendline. This bounce coincided with the bounce above at the $18 horizontal support area.
Subsequently, on September 18, SOL’s price broke out of a descending wedge pattern, which is typically considered a bullish signal. This breakout could potentially initiate a new upward trend.
Moreover, the daily Relative Strength Index (RSI) has surpassed its downward resistance trendline (green). This RSI breakout also indicates a changing trend.
When coupled with SOL’s price breakout, it suggests that the upward momentum is likely to continue, potentially leading to a 40% increase.
However, despite the bullish outlook, it is important to note that if the ascending support line is breached.
It could result in a 25% decline, taking SOL down to the long-term descending resistance line around $14.
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Top crypto platforms in the US | December 2023
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.