Solana’s price is still trading inside the bullish pattern even though it was unable to surpass the long-term resistance level.
The long-term falling resistance line for SOL’s price started in November 2021 and passes an important horizontal level of around $26, which emphasizes the significance of the line.
Solana failed to break above this region in April (depicted on the chart as a red circle), which resulted in the creation of a sizable bearish candle the following week.
The weekly Relative Strength Index is displaying conflicting results; it is currently below 50 yet has been growing since the year’s commencement. Therefore, it appears that SOL’s price will continue to fluctuate.
What happens if Solana’s bullish pattern continues?
The 6-hour timeframe’s technical analysis reveals that SOL has been trading inside of a falling wedge since April 16th. A break out of this pattern, which is thought to be bullish, appears to be the most likely outcome.
The wedge support line, the 0.618 Fibonacci support level, and the $20 horizontal support region were all confirmed on May 11 as the price of Solana recovered. Therefore, as long as SOL is trading above the bounds of the figure, the trend will be viewed as bullish.
The likelihood of a breakout has not yet been supported by the RSI, though. The indicator is remained below the 50 level and is moving along a downward resistance line. Whether the price of Solana exits the wedge’s top border or exits its support down will probably determine the future trend. A breakout might trigger a collapse to $16.50 or a rally toward $23.59 for the asset.