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- SOL token price is trading below the long term demand zone at $82.54.
- The token forms a falling wedge pattern on a daily time frame.
- The pair of SOL/BTC is trading at 0.002245 with an increase of 0.12% in the market cap of the digital asset over the past 24 hours.
SOL token price is in a strong downtrend from the past trading weeks.As per the price action the coin has failed to hold above long term demand zone after forming a big bearish candlestick pattern. The token is forming lower low and lower high formation on a daily time frame. At present, the token is trading below all the vital Exponential Moving Average(20, 50, 100) and could face rejection moving upwards.SOL token is continuously facing rejection of the downward sloping green trendline, acting as a strong resistance. After facing the rejection at the upper band, currently, the token is trading at the lower band of the bollinger band indicator.Volumes over the past trading weeks have increased as the token gave a breakdown of long term demand zone at $105, clearly showing the presence of the bears.This validates the breakdown and thus the trend can be bearish for the upcoming trading weeks.
SOL token price is forming falling wedge pattern on daily time frame
SOL token price was falling from the past trading days, forming a lower lows. But recently, the token managed to stay above the previous low despite the selling pressure of the supply zone. As a result, it started trading in a smaller range which led to a falling wedge pattern on a daily time frame.
Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily time frame as it gave a positive crossover. The buyer’s (blue) signal line crossed the seller’s (orange) upside. If the token breaks out of the green trendline, it can reach $105 and above. It is possibly making new highs if the momentum continues.
Supertrend: Recent bullishness in the cryptocurrency market has not affected the super trend indicator. The sell signal from the indicator is still intact as it broke down the supertrend buy line with strong bearish candlestick pattern. If the token price breaks out of the red supertrend indicator line, the indicator can be seen giving a buy signal. Until then, an investor should remain cautious.
RSI and ADX are showing bullish signs on the daily time frame
SOL token price is in a downtrend on a larger time frame, and recently it formed a chart pattern. Once the token breaks out of the pattern, it could trigger a massive move on the breakout side.
Average Directional Movement Index: ADX has been continuously dipping from the past trading days, and recently, it slipped below 20, as the token faced rejection at $2.92. The ADX curve is seen recovering, and it has turned upwards at present. Thus indicating a halt in the movement of the price and possible change in the structure of the price movement.
Relative Strength Indicator: RSI is trading at 39.97 as the token forms a bullish reversal pattern. The RSI curve is nearing the 50 halfway mark, and thus once it crosses the 50 mark, the token can be seen moving up, possibly giving a breakout of the falling wedge pattern. The RSI curve has also gone past the 20 SMA, indicating a bearish momentum for the upcoming trading days.
Conclusion
As per the price action, SOL token price is forming a falling wedge bullish chart pattern. The technical parameters are also suggesting bullish momentum for the upcoming trading days. The investor should be cautious until the token breaks out on either side. It remains to see if the token breaks on the upside or bears trample the price down.
- SUPPORT: $82.0 and $86.23
- RESISTANCE: $103.7 and $105.9
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
