Key Takeaways:
- SOL price seems to be forming an inverse head and shoulders pattern.
- A major bearish trend line is forming with resistance near $20.50 on the daily chart.
- Solana could stage a fresh rally if there is a close above the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Solana (SOL) has been forming a support above $19.20, from where it could start a strong upside move toward the $20.50-21.50 range.
Solana Price Prints Classic Bullish Reversal Pattern
Technically, SOL’s price faced selloff pressure below the $20.00 zone. The price traded below the $19.20 and $18.50 levels to enter a bearish zone.
Finally, the bulls appeared near the $17.35 zone. A low was formed near $17.36 and the price is now rising, like Bitcoin and Ethereum. The price recovered above the 23.6% Fib retracement level of the downward move from the $25.38 swing high to the $17.36 low.
It seems like Solana is forming an inverse head and shoulders pattern with a support base at $19.25. An immediate hurdle and a short-term breakout zone is near the 50-day simple moving average (blue) at $20.40.
More importantly, the price follows a major bearish trend line forming with resistance near $20.50 on the daily chart. A close above the trend line resistance might signal a breakout.
The next resistance for SOL price could be the 61.8% Fib retracement level of the downward move from the $25.38 swing high to the $17.36 low at $22.35. If there is a clear move above $22.35, the price could accelerate higher. In the stated case, it could visit the $25.00 resistance.
Another Decline in SOL Price?
Conversely, the price could struggle to clear the 50-day simple moving average (blue) and correct lower. Initial support is near the $19.25 level (a multi-touch region and a strong pivot level). If there is a downside break and a close below the $19.25 support zone, there could be a strong downside thrust.
In the stated case, the price could test the $17.40 support zone. Any more losses may perhaps open the doors for a drop toward the $15.00 support.
Overall, SOL price is likely forming a bullish breakout pattern. If Solana clears the trend line resistance and settles above $22.35, it could be a major uptrend signal. Conversely, it could start a fresh decline toward $17.40 or lower.
