Bulls Faces Resistance Near $45.0; Is Reversal On Cards?

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Solana price analysis shows signs of exhaustion near the critical resistance around $45.0 in today’s session. The bulls managed to keep the upside momentum and reached the interim maximum potential near the short-term resistance zone.

The bears are in the process to take control but must gather added seller participation to initiate the selling momentum.

As per CoinMarketCap data, the price has been up 3.40%  in the last 24 hours with a trading volume of $1,753,819,805. SOL ranked at 9 in the cryptocurrency as per the market cap.

  • Solana’s price edges higher for the second consecutive session.
  • A decisive break above $45.0 would set the next upside target.
  • The momentum oscillators favor the bullish outlook.

Solana price looks for upside continuation

Source: Trading view

On the daily chart, the price is trading in a rising channel, but something different is happening inside that channel. The price is making higher lows, with lower highs, indicating accumulation with a slight contraction in the price.

SOL is forming a “volume contraction pattern”. The key to this pattern is that there needs to be a contraction of volatility as the chart moves from the left to the right. This highlights that the volume available is decreasing and becoming scarce. In addition, the more dramatic in volume, the more likely that the move will be explosive.

Earlier the breakout is accompanied by an increase in the relative volume.

The price is trading in a tight range of symmetrical triangle pattern”. There is a higher probability of giving the breakout on the higher side, with an expected move of around $48 followed by the $50.0 psychological level.

On the flip side, a break below the session’s low would invalidate any bullish argument in the token. In that case, the first downside target is $40.80. Next, the seller would target the low of August 4 at $37.93.

Also read: https://coingape.com/how-to-protect-your-crypto-from-solana-like-hack/

The RSI is trading above 50, indicating that the average gain is more significant than the average loss, you can conclude that it’s in an uptrend and buyers could look for buying opportunities. 

The nearest support is around $40.80, whereas the resistance is around $46.20. There is a higher chance of breaking the resistance. 

Solana price analysis indicates that the current market structure portrays the bullish potential with multiple bullish formations on the daily chart. Further, the market volatility further added to the headwind in the asset.

SOL is bullish on all time frames. Above $44.50  closing on the hourly time frame, we can put a trade on the Buy side. 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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