Has Solana Began a Bullish Trend Reversal? | Credit: Derek Fenech
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Key Takeaways
Solana (SOL) bounced at the $30 horizontal support area.
The SOL price has not broken out from its diagonal resistance yet.
Can SOL resume its ascent and confirm the bullish trend reversal?
SOL shows promising signs of a bullish trend reversal after reclaiming a critical support area.
Technical indicators and the price action are challenging essential resistance levels.
Will Solana’s breakout finally materialize, leading to a push toward the all-time high?
SOL Creates Bullish Candlestick
Solana’s price has increased since April, when it fell below the $130 horizontal support area (black circle).
Since the support area had existed for over a year, its purported breakdown was a decisive bearish sign.
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The reclaim is equally critical since it creates a deviation below the area, a positive sign that usually leads to trend reversal.
Solana’s price confirmed the $130 area as support by creating a bullish engulfing candlestick in the final week of June (green icon).
Today, the Solana price attempts to break out from a descending resistance trendline that has existed since the all-time high price of $295 in January.
Technical indicators are approaching their bullish thresholds. The Relative Strength Index (RSI) is almost 50, while the Moving Average Convergence/Divergence (MACD) is virtually positive.
If the SOL price breaks out from the resistance, it will cause the indicators to turn bullish.
Therefore, the weekly time frame technical analysis gives a cautiously bullish SOL price prediction.
Solana Correction Over
The daily time frame technical analysis suggests the SOL correction is over.
SOL completed a W-X-Y correction (red) between May 23 and June 22.
The correction was contained inside a descending parallel channel, which is common for such a structure.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
