Solana’s price recovers from the reliable support zone of $30.46. Now, the price hovers near the critical resistance zone. The current market structure and the technical setup favor the bullish view.
As of writing SOL/USD is trading at $33.47, up 2.31% for the day. The ninth largest cryptocurrency by market cap holds the 24-hour trading volume at $1,058,262,250 with more than 6% gains according to CoinMarketCap data.
Solana price extends the gains for the second straight day.
Bull’s keep eye on $36.00 following the bullish formation on the daily chart.
The price depreciated nearly 37% from the swing highs of $48.42.
Solana price turns positive
Solana price on the daily chart shaped a “Bullish Shark Harmonic” pattern. During a very optimistic Shark pattern, however, the second top is higher than the first one. To boost, it combines Fibonacci with Elliott’s waves theory, and a couple of new ratios like 127.20% retracement levels are used.
According to this pattern, if the price closes higher than its long consolidation zone resistance ($33.05), then we’ll expect an optimistic movement of up to ($36.50).
On the other hand, a shift in the bearish sentiment could trigger selling in the price. If that happens, the first downside target could be located at $31.80 followed by the low of August 28 at $30.05.
SOL on the four-hourly chart formed a “Symmetrical Triangle” pattern. The Symmetrical Triangle is a volatility contraction pattern. This means volatility in the market is shrinking and a sign the market is likely to break out, out soon. There is a higher probability of price giving breakout from its zone on the higher side, breaking out the resistance of ($33.85)
According to this pattern, a breakout above $33.85, will take Solana’s price to the highs of August 25 ( $36.42) followed by the psychological $40.0 level.
The nearest support is the previous swing low ($32.00), whereas the nearest resistance could be found at ($33.85). There is a higher probability of the price breaking the resistance level. “Breakout strategy” is the best course of action we can go with.
On the opposite hand, a prospect below the $30.40 level may invalidate the bullish outlook. And also the price could drop to $29.00.
Source : coingape