Solana (SOL) Needs to Overcome this Vital Level as Bulls Target $200

Briefly –

  • SOL seems to taunt a declining wedge breakout on its daily chart.
  • Solana bulls should secure stability beyond $148 for a new swing high.
  • Meanwhile, the bullish RSI and the 50-day MA cautions the downswing.

Saturday sessions have Solana recording a brief buying resurgence as it recovers from Friday’s sudden plunge towards the $127.50 territory.

Solana bears stepped up to control the market, trailing the down-beat attitude exhibited by the overall market due to China’s crypto blow. The Chinese financial giant, PBOC, declared all cryptocurrency transactions illegal vehicles used to facilitate illicit financial deals. While writing this article, Solana (SOL) trades around the $140 level after adding nearly 1% since yesterday. However, the altcoin has higher possibilities of enduring the 2nd week of straight losses. Keep in mind that the alt has suffered losses since hitting its ATH almost one month ago.

SOL Prepared for Massive Technical Breakout

According to SOL’s daily price chart, bulls appear to challenge the dropping trend-line resistance near $148 after failing to overpower the level twice early on the week. If Solana’s bulls manage to claim a massive foothold beyond this area, the alt will confirm an upside break over the dropping wedge pattern.

As stated earlier, Solana has traded inside a bullish pattern since touching a record high at $221.38 on 9 September. The alternative coin formed lower lows and lower highs, creating a plunging wedge pattern. For now, the asset seems to secure momentum to rally high.The 14-day RSI moves high past the midline, increasing chances of uptrends.

Breaking the wedge pattern will clear the road towards $200. Before that happens, the horizontal 21-DMA near $159.40 might test the commitments by bears.

If Solana fails to accumulate the strength required to overcome the wedge obstacle, the asset might witness corrections towards the 50 DMA around $110.50. If the asset records continuously fall, it will dip to the $100.60 support. Any move beneath this level might catalyze a new downswing towards $71.54 and 100-DMA.

For now, the 50-DMA defense and the bullish RSI may encourage bullish activities for the altcoin to gain upside momentum. Overall market sentiment will also determine SOL’s next move.