Solana overcame the 600-day resistance: what to expect from the price of SOL next
Date: 2023-07-19 Author: Karina Ziganova Categories: BLOCKCHAIN
Solana price has successfully overcome the important horizontal and diagonal resistance levels. This breakout is indicative of the likely start of a bullish trend.
Price action and readings from a range of indicators serve as further confirmation of the ongoing uptrend, raising the likelihood that SOL will continue to rise in the near future.
A breakout of long-term resistance suggests further growth
Technical analysis of the weekly timeframe shows that two weeks ago, SOL made a significant breakout, breaking the descending resistance line that had existed since November 2021 and covered a period of 600 days.
Such breakouts often signal the end of the previous trend and the beginning of a reversal. Four bullish candlesticks that appeared after the June lows also confirm this possibility.
The breakout is supported by the weekly Relative Strength Index (RSI), which rose above the 50 mark for the first time since late 2021.
Will Solana's bullish price reversal be confirmed?
Technical analysis of the daily timeframe confirms the bullish outlook. The price of Solana has been skyrocketing since June 10. During this time, it bounced off the downward resistance line, which lasted for 81 days, which is also a sign of a trend reversal.
The probability increased further after SOL returned to the horizontal area of $26, which is now expected to serve as support.
On July 14, the asset's price reached a new annual high of $32.13. After that, it formed a long upper wick and declined, but is still trading above the $26 area.
The daily RSI also gives bullish readings. Despite the fact that the indicator is now in overbought territory, there are no bearish divergences on the chart to warn of a possible fall.
Thus, the most likely forecast for the price of Solana is a continuation of growth in the direction of the next resistance area at $38.
A close below $26 would invalidate the breakout and could cause a drop to $20. However, at the moment we do not see any signs indicating this, except for the long upper wick.
