Solana (SOL) broke several times a critical resistance level, attempts to recover which were limited during the price correction from November 2021 to March 2022, which gives hope for further growth in April.

Solana Turns Major Resistance Into Support
In short, the price of SOL has experienced major bounces after testing the multi-month downtrend line in recent history.

For example, the SOL/USD pair fell 60% after two months of bouncing back from the aforementioned resistance level in December 2021. Likewise, it fell over 40% as a result of a similar corrective move triggered by selling near the trend line in November 2021. .

Daily SOL/USD price chart. Source: Trading View
But Solana reversed a resistance trendline as the (S/R) support reversed after the breakout on March 30, accompanied by an increase in volume that showed traders were convinced of a breakout move. At the same time, the price of SOL rose by 25% to $135, which put the psychological resistance level of $150 within reach.

Why is SOL (technically) bullish?
From a technical standpoint, the SOL breakout move has pulled back above the downtrendline resistance along with the bullish crossover of the two major moving averages: the 20-day EMA (20-day EMA; green wave) and the 20-day EMA. 50 days (exponential moving average). red wave).

A technical indicator called the golden cross occurs when the short-term moving average of an asset crosses the long-term moving average. Traditional analysts see this crossover as a buy signal.

Daily SOL/USD price chart with Golden Cross. Source: Trading View
For example, the crossover of the 20-50 EMA in August 2020 may have helped push the price of SOL over 650% to over $267, along with other fundamental and technical catalysts. Thus, the golden cross increases the likelihood of SOL continuing to rise, as well as breaking through the resistance of the downtrend line.

RSI Divergence
The upside potential is further increased if the technical fractal highlighted by Delphi Digital is to be believed.

The crypto research company highlighted the correlation between the price of SOL and the combination of two technical indicators: the S/R reversal and the Relative Strength Index (RSI) divergence.

Especially the first time Solana’s RSI jumped above 70, the “overbought” area, after a strong price trend that also broke downtrendline support during this period, SOL tended to continue rising despite the RSI consolidating. down or to the side.

Source: CoinTelegraph

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