- Solana (SOL) breaks out of a descending channel and trades at $137.31, up 3.5% from Tuesday.
- The trendline retest level around $132.34 could support further bullish moves, with a target of $151.79.
- RSI shows recovery, but AO remains hesitant; Sustained positions above neutrality are needed for a rebound to be confirmed.
Solana (SOL) recently broke out of a descending channel pattern, sparking renewed investor interest. On Thursday, Solana is trading at $137.31, up 3.5% from the breakout point seen on Tuesday. This breakout offers a potential entry point for investors, especially near the trendline retest level around $132.34, where bulls are expected to push prices higher in the coming days.
Solana technical breakout and key levels
The descending channel pattern, defined by several lows and highs observed between June 6 and June 25, has been a critical resistance point for Solana. The recent break above this channel suggests a change in momentum. If the upper band of this descending trend line, around $132.34, acts as support, Solana could see a fresh rally of up to 10%, targeting the June 17 daily high of $151.79.
Momentum indicators point to a possible rebound
The Relative Strength Index (RSI) on the daily chart is showing signs of recovery from an oversold condition, approaching the median value of 50. This indicates increasing buying pressure. However, the Astonishing Oscillator (AO) remains below zero, highlighting that the overall momentum is still tentative. The RSI and AO must maintain positions above their neutral levels for a sustained recovery rally. This alignment would provide the additional momentum needed to confirm the uptrend.
If the bullish momentum continues and the broader outlook for the cryptocurrency market remains favorable, Solana could close above the $151.79 mark. Such a move would solidify the breakout and pave the way for a prolonged rally. In this scenario, Solana could target its weekly resistance level at $172.93, representing a potential additional 14% gain. Reaching this level would signify strong bullish sentiment and could attract more investors.
Strategic entry points for investors
For investors looking for strategic entry points, the current price around the $132.34 level offers a favorable risk-reward ratio. Buying near this trendline test level could position investors to benefit from the anticipated rally. Monitoring the RSI and AO indicators to confirm sustained momentum will be crucial to making informed decisions.
Solana's recent breakout of the descending channel pattern marks a significant change in its price dynamics. With the potential for a 10% rally to $151.79 and further gains to $172.93, investors have a compelling opportunity to enter the market. The rising RSI and the need for AO to confirm momentum highlights the importance of monitoring technical indicators. As Solana navigates these critical levels, the coming days could prove crucial to its price trajectory, offering substantial upside potential for well-positioned investors.
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(tags to translate)Solana