How Far May Solana Coin Price Rise After Escaping Ongoing Consolidation?

Following the sharp decline in early November, the Solanacoin price turned sideways, forming an inverted descending triangle pattern. Under the influence of this pattern, the coin’s price has been teetering between constant horizontal resistance and the downtrend line for the past two months. This pattern usually forms in highly volatile markets, with successive price movements being greater than the last. While that pattern is not one of the most commonly observed chart patterns, it can offer a great bullish opportunity during a neckline breakout.

Key Point

• $12.8 Resistance Breakout Drives SOL Price Up 10%
• The Bollinger Bands Indicator suggests that price action needs to stabilize before going up
• The Solana coin has a 24-hour trading volume of $445.5 million, up 85.8%.

sauce-trading view

Amid the recent crypto market recovery, Solana’s price bounced off the $8 support on Dec 29. This New Year’s recovery has pushed the SOL price up 70% in his two weeks to its current price of $13.45. Moreover, this bullish recovery has broken out of the local resistance at $12.8, which is currently trying to hold the price at higher levels.

However, for the past five days, the Solana coin price has been hovering above the trendline and is struggling to boost further growth. Therefore, the rejection of short bodies and long wicks that accompany daily candlesticks reflects the uncertainty among market participants.

Also Read: Top 10 DeFi Lending Platforms for 2023

In any case, traders who believe that the SOL price could rise further ahead may see the stop loss below $12.8 and enter the ongoing retesting phase. Therefore, continued buying could see the altcoin rise 10% and challenge the $15 resistance.

A possible breakout from $15 will propel the price to $18.10.

Conversely, a break of $12.8 could undermine our bullish thesis and push the price to the support at $11.3.

technical indicators

MACD: The widening gap between the MACD and the signal line indicates that the Solana price is gaining bullish momentum. Additionally, these lines are about to cross the midline, providing additional confirmation for long traders.

Bollinger Bands: As the price of Solanacoin increases, the upper limit of the indicator is reached. This is a sign of a rapid rise in the short term. This justifies the necessary consolation or pullback before prices start rising again.

Intraday Price Levels of Solana Coin

• Spot Price: $13.67
• trend: bullish
• Volatility: High
• Resistance Levels – $15 and $18.1
• Support Levels – $12.8 and $11.3