Throughout September, the SOL price has traded sideways, wavering around the $19 mark. While this consolidation reflected no progress in either direction, a look at the daily time frame chart shows the formation of a bullish reversal pattern called inverted Head and Shoulder. Amid the recent uptick in the crypto market, the crypto buyers have provided a bullish breakout from this pattern’s neckline, indicating the potential for further gains.
Also Read: Vitalik Buterin Charts Path to Decentralized Ethereum Staking
Will SOL Price Recovery Extend to $25?
- Completion of an inverted head and shoulder pattern set the SOL price to rally to $25
- The reclaimed 20-and-50-day EMA could offer buyers additional support to lead a recovery rally.
- The 24-hour trading volume on the Solana coin is $161.4 Million, indicating a 13% gain.
Source-Tradingview
With an intraday gain of 6.85%, the Solana price gives a decisive breakout from the neckline resistance of inverted head and shoulder patterns. This chart pattern is often spotted at market bottoms and would reflect an early sign of a bullish reversal.
By the price time, the coin price trades at $21.65. The breakout backed by increasing volume reflects the seller’s commitment for a bullish recovery. If the coin price sustains above the breached level, the buyers would obtain suitable support from this level to bolster further rally,
The post-breakout rally would likely surge the prices 17% higher to reach the $25 mark. A look at the bigger picture shows the SOL price has been riding a recovery trend since January 1st under the influence of a rising channel pattern. Until this pattern’s support trendline is intact, the altcoin is prevented from a major correction.
SOL vs ETH vs BTC Performance
Source: Coingape| Solana Vs Bitcoin Vs Ethereum Price
Comparing the last three months’ price data between Solana, Ethereum, and Bitcoin, it seems the SOL price has been under a steady downward trajectory since mid-July. The formation of new lower lows and lower highs reflect the downward trajectory is intact. However, the top-leading cryptocurrency Bitcoin and Ethereum has been trading majorly
- Average directional index: an ADX slope uptick aligned with the aforementioned breakout candle, reflecting the buyers have enough strength to loot a further rally.
- Exponential Moving Average: The 200-day EMA resistance wavering around $22.2 creates a high supply zone.
