October 1, 2022

The past few weeks saw Solana’s patterned breakout crystallizing into a symmetrical triangle following a downward channel’s upper trend-line retest. The closing beyond the 20Exponential Moving Average and the 50Exponential Moving Average has confirmed a surging buying superiority. However, SOL was yet to secure a volatile break for long-term trend shift confirmation.

Meanwhile, the gradual SOL troughs uptick might heighten the token’s chances of challenging the 0.618 FIB retracement. Nevertheless, bulls should propel higher buying volumes to conquer the supply zone. While publishing this post, Solana traded at $44.09, following uptrends over the past few days.

Solana Daily Timeframe

Solana corroborated with improved broad market cues, and the altcoin recorded upswings after recovering from the baseline at $28. Meanwhile, a gradual buying revival supported the bulls to undermine the long-term downward channel.

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The emerged breakout rally saw SOL printing a symmetrical triangle on the daily chart within the past three weeks. Meanwhile, Solana’s price drifted alongside the 20EMA and 50EMA, becoming more susceptible to volatile breaks. Investors should consider a possible bullish cross on the Exponential Moving Averages to discover possibilities of sustained recoveries beyond $46.5.

Bounce-backs from this mark might stretch the sluggish revival phase during the upcoming sessions. That would see SOL falling to retest the POC (Point of Control) near $39. Meanwhile, the previous upside saw the symmetrical triangle break exhibiting bullishness. A plausible closing beyond 61.8% might witness barriers at the $47 – $50 value area.

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Reasoning

The Relative Strength Index flashed a slight buying edge after securing a dependable spot beyond the midline. Failure to close above the 59-60 hurdle range might bolster sellers to halt the surging buying strength.

The on-balance volume displayed a brief upswing within the previous week but failed to overcome its nearest resistance. Moreover, possible sudden price upticks might see the price peaks confirming bearish divergence with the on-balance volume.

The Awesome Oscillator printed lower highs and neared its equilibrium. This outlook confirmed a reducing buying preference. Also, the ADX flashed significantly weal SOL directional trends.

Final Thought

Considering symmetrical triangle breakout, Solana might witness an extended resurge that could meet obstacles within the supply region. A bullish cross on the Exponential Moving Average plus volume upticks might annul the bearish outlook. Take-profit zones and triggers would remain as mentioned above.

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