Solana looks primed for an upward impulse as multiple technicals turn bullish.
Solana has risen by more than 15% over the past week.
Still, the Layer 1 network has not yet overcome resistance.
Slicing through $93 could result in an upswing to $120.
Share this article
Solana has reached a crucial resistance level as it attempts to catch up with other Layer 1 coins like Avalanche, which have surged by more than 35% in the past week. Several technical indicators suggest that SOL could be preparing to break out.
Solana Prepares to Break Out
Solana appears to be on the brink of breaking out as its price action flashes multiple bullish signals.
The Layer 1 network’s SOL token has seen its market value increase by more than 15% over the past week to test the $93 resistance level. This hurdle is significant to Solana because it sits around the descending trendline of a wedge that has been forming on its daily chart.
A decisive candlestick close above $93 could signal a breakout from the consolidation pattern. Under such circumstances, sidelined investors could re-enter the market, pushing Solana by roughly 34% toward $120.
It is worth noting that SOL’s price appears to be creating a bullish divergence against the Relative Strength Index within the same timeframe. While Solana makes a series of lower lows, the RSI has been making a series of higher highs. Such market behavior indicates rising upward momentum, adding credence to the optimistic outlook.
Still, Solana will likely need a sustained daily close above $93 to confirm the bullish thesis. If it fails to break this resistance level, the asset could suffer a correction to the wedge’s descending trendline at $75.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.