Solana managed to overcome a key resistance level: what to expect from the SOL price next
Date: 2023-07-08 Author: Karina Ziganova Categories: BLOCKCHAIN
On June 29, the native token of the Solana blockchain successfully overcame the key resistance level of $17, confirming it as support. Currently, the asset is trying to break out of an important diagonal resistance area.
While the SOL has previously shown signs of further downward movement and a renewal of the annual low, recent price action shows that the upward momentum is likely to continue.
Solana price has returned to important support
Technical analysis of the daily timeframe shows that the recovery of the SOL price began with the formation of a long lower wick on June 10, which is considered a signal of increased buying pressure.
The significance of this growth lies in the fact that the asset regained the horizontal area of $17 as support. After a brief drop, the price of SOL rose above it, and on June 30 it peaked at $20.
At the moment, Solana is trying to bounce off the downward resistance line that has been in place since April 17. Consolidating above this line could further accelerate the pace of growth and confirm a bullish reversal. However, the breakthrough attempt, which the asset made on July 6, was unsuccessful - as a result, a long upper wick formed on the chart (it is marked with a red icon on the chart), which is considered a sign of selling pressure
The daily Relative Strength Index (RSI), meanwhile, is giving bullish signals. The indicator has exceeded the 50 mark and continues to grow, indicating an uptrend.
Wave analysis supports the growth of SOL
Analysis of the wave chart on the daily timeframe also indicates a positive outlook. According to it, the Solana price has completed the correction structure A-B-C - this is confirmed by the coincidence of the lower point of wave A with the current upper point (it is indicated by a red line on the chart).
If the calculation is correct, then on June 10, the asset began another five-wave upward movement (it is indicated by a white line on the chart) and, most likely, will break through the next resistance level. In this case, its price will reach the next resistance at around $26.
However, SOL is currently in the second wave of growth, which is corrective. Thus, the most likely scenario would be an initial pullback to the $17 support area before the final breakout.
A fall below $17 will confirm that the trend will remain bearish. In this case, there is a possibility that the price of Solana could drop to $10.
