Categories: Market

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: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.