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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