Solana (SOL) price broke out from the long and short term resistance lines, which went a long way in confirming that the price has started a bullish reversal.
SOL price has been on a tear since the low of June 10 and is showing no signs of weakness either on the long or short-term timeframes.
Solana price breaks out from the 600 day resistance
A look at the weekly time frame shows that SOL broke out from a long-term bearish resistance line last week. Prior to doing so, the streak had been in place since an all-time high in November 2021, precisely 600 days long. Breakouts from such long-term structures usually indicate that the previous trend has ended and a new trend has begun in the other direction.
In the case of SOL, the price is likely to start a new bullish trend reversal.
While the daily RSI supports the breakout, it has not yet confirmed it. The indicator made a higher low and is increasing but is sitting at 50. Using the RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to collect or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is bullish, but if the reading is below 50 the opposite is true. A weekly move and close above the line will confirm that the bullish trend reversal has started.
SOL Price Prediction: Price is recovering, regaining critical support – is it next?
According to the technical analysis of the daily timeframe, the 71% price recovery started on June 10th. This recovery started with a long lower wick, which indicates an increase in buying pressure.
The significance of this price increase is that SOL (the cryptocurrency) managed to recover the horizontal level of $17. Previously, this level was expected to act as resistance after the crash. However, after a slight rejection on June 20, SOL price rose above the $17 region and peaked at $20 on June 30.
After that, SOL price broke out from the descending resistance line that had been there since April 17th. A successful breakout above this line goes a long way in confirming that the trend is bullish, even in the short term.
Moreover, the daily RSI is above 50 and increasing, which supports the legitimacy of the breakout.
If the upward move continues, the next resistance is at $26, which was formed from the yearly high.
Despite this bullish prediction for SOL price, the price might drop to the descending resistance line at $18 if it loses its foothold. However, there are no short-term signs that this might happen.
For the latest cryptocurrency market analysis from BeInCrypto, click here
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.