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- The SOL token price is trading at the supply zone on a daily time frame.
- The SOL token price is forming a rounding bottom pattern on a daily time frame.
- The pair of SOL/BTC is trading at the price level of 0.001595 with a decrease of -0.59% in the past 24 hours.
The SOL token price as per the price action is trading near the supply zone after bouncing strongly off the demand zone. The SOL token price is forming higher high and higher low formation on an hourly time frame. While on a larger time frame the token price is for its lower low and lower high price structure. The recent fall in the price of the SOL token price has led to it breaking the important demand zone. Recent gains in the price of SOL token price could just be a pullback of the bearish trend. Currently, the supply zone has been tested twice, making it weak. Therefore if the bulls overpower the bears, the token price can be seen moving upwards rapidly. The SOL token price is trading below the 50 and 100 MAs. The recent fall in the price of SOL token price has led to token prices falling below the important MAs. Moving upwards the token price can be seen facing strong rejection from these MAs. At present, the SOL token price is trading at the upper band of the Bollinger band indicator. The range of Bollinger bands has narrowed indicating massive movement on either side. Volumes have increased as the token price rose from the demand zone.
The SOL token price is forming a rounding bottom pattern on a daily time frame
Supertrend: The SOL token price has fallen rapidly in the past week following the bearish sentiments in the overall cryptocurrency market. As a result, the SOL token price has started trading in the long-term demand zone. Recent bearishness in the price of SOL token price resulted in the breakdown of the super trend by line. Previously, the super trend buys line was acting as a strong demand zone. The breakdown of the super trend buy line, was with a strong bearish candlestick pattern. As of now, the super trend indicator has triggered a sell signal. Moving upwards the token price can face strong rejection of the super trend sell line.
Relative Strength Index: RSI curve is trading at the price of 49.12 as the token fell to the demand zone. At present, the RSI curve has crossed the 20 SMA. The token is forming lower low and lower high formation on a daily time frame as the token shows bearishness in the higher time frame. The SOL token price can be seen moving if it sustains the recent gains and breaks the supply zone and if it does then the RSI curve can be seen moving even higher up supporting the trend, crossing the 50 halfway mark
Average Directional Movement Index: ADX curve has been falling for the past couple of days. This has come after the token price failed to surpass the supply zone. At present, the ADX curve is transacting at 21.45. Recent bearishness has resulted in the ADX curve slipping below the 25 Mark. If the token price fails to bounce off the demand zone, the ADX curb can be seen losing strength and falling further.
CONCLUSION: The SOL token price is trading at the demand zone, and as the price action suggests, is forming a bullish chart pattern. As per technical parameters, the token price can continue in a bearish trend for a larger time frame. Although the token price has formed a bullish candlestick pattern at the demand zone, it remains to see if the SOL token price successfully bounces off the demand zone or falls below it. An investor should remain cautious and wait for a proper signal and then act accordingly.
SUPPORT: $30 and $28
RESISTANCE: $40 and $47
Saurav Bhattacharjee is in charge of the Broadcast development team of The Coin Republic.
He has been covering the Metaverse and NFT niche for the past 2 years.
With stellar interviews on his portfolio like Nicehash, Paxful, WallstreetWolvesNFT, Bitholla, Totemfi, EOS.io etc. Saurav has spearheaded the NFT SUPERSTARS AWARD and successfully hosted the first award in 2021.
