The daily technical chart shows the Solana coin price is in a short-term range-bound rally. Furthermore, this sideways is restricted within the top resistance of $47.4 and bottom support of $26. The coin holders should keep a keen eye on these levels as they will have a significant impact in the near term future.
The ongoing bear cycle within the aforementioned range has revealed a descending triangle pattern formation. In theory, this bearish continuation pattern triggers a significant boost in selling pressure once the coin price breaks below its neckline support.
Concerning this pattern, the Solana coin chart shows the $30 as the neckline support and a descending trendline as a dynamic resistance. Earlier today, the altcoin showcased a 4% gain and tried to break the $34.5 resistance.
However, the descending trendline intersected at the same level, creating a strong resistance zone for buyers. Moreover, the crypto market faces sudden selling pressure and evaporates the entire intraday gains.
The Solana coin price is currently trading at the $32.84 mark, with a 3.04% loss from yesterday’s closing.
Thus, a strong rejection candle formed at $34.5 resistance indicates the coin price is likely to tumble 9% lower to hit the $30 support. Under the influence of this pattern, the SOL price should eventually break the neckline support and carry the downfall another 12.5% down to reach the June low support of $26.
On a contrary note, a possible breakout from the resistance trendline will indicate a switch in market sentiment and an opportunity for price recovery.
RSI: the daily-RSI slope shows an evident bullish divergence concerning the price restest to the $30 support. This divergence strengthens the possibility of a bullish recovery.
Source : Coingape