Consistent with the broader development within the total crypto market, the Solana (SOL) worth has fallen by 7.5% within the final 24 hours. Nonetheless, in keeping with famend analyst Rekt Capital, there isn’t a purpose to modify to the bearish facet.
In a latest technical evaluation, the crypto analyst highlighted that Solana is presently displaying potential for an 80% worth rally primarily based on its current consolidation sample. In response to Rekt Capital, Solana is buying and selling inside what seems to be a bull flag formation, as depicted on the weekly SOL/USD chart from Binance.
A Bull Flag sample happens after a powerful, nearly vertical worth rise and is characterised by a downward-sloping consolidation that resembles a flag on a pole. The “pole” is fashioned by the preliminary worth surge, whereas the “flag” represents a interval of consolidation with converging trendlines.
Merchants typically look ahead to a decisive breakout above the flag, which may sign the continuation of the prior uptrend. In Solana’s case, the analyst factors out that Solana just lately confronted a rejection on the high of the bull flag sample at $208, indicating a short-term setback in its upward trajectory.
“And if Solana retains this up, it might type a Bull Flag right here earlier than breaking out to problem that Vary Excessive $208 resistance once more,” Rekt Capital famous.
Nonetheless, the underside of this bull flag, which stands at roughly $184, is recognized as a crucial help degree that must be maintained to maintain the bullish momentum alive. Ought to Solana handle to carry above this degree, the setup could favor the continuation of the uptrend.
Notably, Rekt Capital provides that whereas occasional dips or “wicks” into the $173 vary are acceptable, the worth should typically stay above the $184 help on the weekly time-frame to validate the bullish outlook. The $173 worth degree is marked by a blue horizontal line on the chart, serving as a further help zone.
When it comes to worth targets, the chart reveals an 80.57% potential rally from the underside of the bull flag (“pole flag”), which may translate right into a goal worth of roughly $330 if the bull flag sample is confirmed within the coming days or even weeks.
Solana Bears Achieve The Higher Hand On The Decrease Time Frames
On the decrease time frames, just like the 2-hour chart, the Solana worth misplaced some momentum, indicating potential short-term consolidation or downward motion. SOL skilled a pointy -13% decline, breaking via a big upward trendline (black) that had beforehand supplied help all through an ascending trajectory.
The worth has sliced via the Fibonacci retracement ranges plotted from the swing low at $162.68 to the swing excessive at $204.19, presently hovering across the 0.618 Fib degree at $178.54. Usually, this degree serves as a powerful help zone, however a sustained break under may speed up losses towards the subsequent ranges at 0.786 ($171.56) and probably the complete retracement at $162.68.
Quantity indicators present a marked improve in promoting stress throughout the worth dip, which substantiates the present bearish momentum. Moreover, the Relative Energy Index (RSI) has plummeted to 29, teetering on the sting of the oversold territory. This means that sellers are in management, but in addition raises the potential of a aid bounce if the RSI dips additional into oversold circumstances and triggers a reactive shopping for response.
Featured picture from Euronews, chart from TradingView.com
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