Solana (SOL) is creating a bullish pattern after a 69% decline against ATH
Solana (SOL) has created a double bottom within a key horizontal support area, suggesting that upward movement may be imminent.
69% discount from ATH
Solana has been down since hitting an all-time high of $259.90 on Nov. 6. So far, the downside has resulted in a local low of $81 on February 22nd. That’s down 69% from an all-time high.
The low formed very close to the 0.786 Fib retracement support at $76, the last support before the August 2021 low.
It is important for the SOL to bottom here for the bullish structure to remain intact.
Daily Solana/USDT chart | Source: TradingView
Solana makes two floors
Trader @AltcoinSherpa tweeted a SOL chart and said that the $80 region is likely to provide strong support.
Source: Twitter
Since the tweet, Solana has risen from the $80 mark and is likely to start an uptrend.
The main cause of this is the formation of two bottoms, which are considered a bullish pattern. The two lows are also associated with bullish divergences on both the RSI and MACD. Such divergences often herald a bullish trend reversal.
Currently, SOL is still falling below the descending resistance line. A breakout of this line can take the price to $149, which is the 0.382 Fibonacci retracement level and the horizontal resistance area.
Daily SOL/USDT chart | Source: TradingView
Short term movement
The two-hour chart shows that SOL has also been trading along a short-term descending resistance line since February 7th. It is currently in the process of making a third escape attempt.
A breakout of this line could also trigger a breakout of the long-term descending resistance line.
So, if there is a breakout, it could be the catalyst for a long-term uptrend to begin.
SOL/USDT 2 hour chart | Source: TradingView
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions
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Solana (SOL) is creating a bullish pattern after a 69% decline against ATH
Solana (SOL) has created a double bottom within a key horizontal support area, suggesting that upward movement may be imminent.
69% discount from ATH
Solana has been down since hitting an all-time high of $259.90 on Nov. 6. So far, the downside has resulted in a local low of $81 on February 22nd. That’s down 69% from an all-time high.
The low formed very close to the 0.786 Fib retracement support at $76, the last support before the August 2021 low.
It is important for the SOL to bottom here for the bullish structure to remain intact.
Daily Solana/USDT chart | Source: TradingView
Solana makes two floors
Trader @AltcoinSherpa tweeted a SOL chart and said that the $80 region is likely to provide strong support.
Source: Twitter
Since the tweet, Solana has risen from the $80 mark and is likely to start an uptrend.
The main cause of this is the formation of two bottoms, which are considered a bullish pattern. The two lows are also associated with bullish divergences on both the RSI and MACD. Such divergences often herald a bullish trend reversal.
Currently, SOL is still falling below the descending resistance line. A breakout of this line can take the price to $149, which is the 0.382 Fibonacci retracement level and the horizontal resistance area.
Daily SOL/USDT chart | Source: TradingView
Short term movement
The two-hour chart shows that SOL has also been trading along a short-term descending resistance line since February 7th. It is currently in the process of making a third escape attempt.
A breakout of this line could also trigger a breakout of the long-term descending resistance line.
So, if there is a breakout, it could be the catalyst for a long-term uptrend to begin.
SOL/USDT 2 hour chart | Source: TradingView
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions
Join CoinCu Telegram to keep track of news:Â https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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