solana The price of is continuing a consolidation move, reflecting weak buying and selling pressure for the altcoin in the cryptocurrency industry. It also registered a correction of over 10% in the last seven days, indicating a strong bearish trend in the crypto space.
The price has also formed a symmetrical triangle formation and is trading within this formation. A symmetrical triangle formation usually indicates that a major move in the price of an asset is approaching. A breakout of this formation highlights the possibility of a major price movement in the SOL price in the near future.
Symmetrical triangle formations are often likely to indicate a continuation or reversal of a trend. A breakout generally refers to the point at which the formation unwinds in one direction. In this context, it is often possible to cause a significant price movement. However, given the volatility of crypto markets, the direction of the breakout cannot be predicted with certainty.
As a result, Solana’s price is currently consolidated within a symmetrical triangle. Additionally, it is possible that a major price movement will occur with the breakage of this formation in the coming period. However, cryptocurrency It is important to always be careful and manage risks in the markets.
Solana Price is on the Verge of Testing the Symmetrical Triangle Formation!
Fluctuating near the support level at $148.75, Solana bulls gained 41.17% in the last five days and started moving towards the $210 resistance level. However, it lost value after encountering this level of rejection. It later corrected 19.18% and tested the $169.50 low.
Afterwards, SOL followed a horizontal course for a while. There were significant price fluctuations on the chart during this time. It gained 12.50% after several breakout attempts where the bulls regained momentum. The price then moved within a range of $181 to $192.75.
As volatility increased, Solana bulls recorded a top of $204. However altcoin It later lost momentum and tested the $169.50 low. Following this move, the SOL token formed a symmetrical triangle formation and has been trading within this formation ever since.
Currently, the price seems ready to break the formation. However, the outcome of this situation cannot be predicted. Technical indicator MACD shows a continuous decline in the green histogram, indicating weak price action in the crypto industry. Additionally, the MACD averages are showing a bearish convergence. This is likely to increase the likelihood of a negative price movement for the altcoin in the near future.
Is It Possible for Solana Price to Recover?
If the market successfully breaks out of the symmetrical triangle, the price will test the $181 resistance level this week. Moreover, if the price starts trading under a bullish influence following the breakout, SOL token will be poised to test the upper resistance level of $192 next week.
Conversely, if the price breaks the symmetrical triangle formation, Solana token will start trading under a bearish effect and test the $169.50 support level. If the bulls fail to hold the price at this level, it will decline and prepare to test this month’s low at $159.50.
