SOL price eyes 75% rally as Solana paints a bullish reversal pattern

Solana (SOL), continued its recovery trend on May 28th, while moving closer to initiating a bullish reversal setup.

SOL’s intraday high was $39.40, which saw a price increase of 2.42%. SOL/USD is currently up 50% in a wider retracement movement that began June 14 and ended at $26.

SOL/USD daily chart. Source: TradingView

Solana price eyeing 75% rally

The Solana market’s latest buying period has seen the creation of what appears to be an “inverse Head and Shoulders (IH&S),” pattern.

When the price forms three troughs below a common support line called the “neckline”, it is a bullish reversal setup. The “head” middle trough is always deeper than the two other troughs, which are called shoulders.

After the neckline price is broken, an IH&S arrangement will be in place. Technical analysis also dictates that the profit target for a pattern is equal to the distance between its lowest tip and the neckline.

SOL/USD daily chart with IH&S pattern. Source: TradingView

Let’s say that SOL crosses above $41.50 as its neckline resistance. With its upside target at $68, which is 75% higher than today, SOL has 83.5% chance of continuing the bullish trend retracement.

Interim resistance levels

Solana’s road to $68 could face hurdles in a confluence of technical resistance levels, including its 50-day exponential moving average (50-day EMA; the red wave) and a support-turned-resistance line. These resistance levels are approximately $47.

SOL is still at risk of exhausting the IH&S breakout. This could lead to a “bear-flag” setup. A pullback from the $47-resistance-level, coinciding with the flag’s upper trendline, could lead to a breakdown, as shown in the chart below.

SOL/USD daily chart with ‘bear flag pattern Source: TradingView

According to its breakdown point, SOL’s downside target is now in the $23-$30 area.

PostyXBT, an independent market analyst, predicted that SOL would reach $47 in a similar scenario.

$SOL idea: Higher low and S/R flip. $BTC has not pushed higher than $23k. – Keep an eye on the short-term trend. Declining volume is a concern. Don’t rush into entering at the current price. If it doesn’t fill slightly lower, then so be it. pic.twitter.com/IgZbeBAq40
— Posty (@PostyXBT), June 28, 2022

He said that declining volumes are still a concern and traders should continue to trade the short-term trend until more bullish confirmation. SOL’s probability of returning lower after hitting $47 is high.

Solana also fell 85% from peak

Solana, like most crypto assets has seen a substantial drop in its value since its peak of November 2021 and is currently at 85%.

Related: Record weekly outflows of $423M in institutional crypto asset products

In addition, Solana’s “decentralization” has come under increasing scrutiny due to repeated network outages as well as a recent attempt by whalers to seize control of their wallets via community voting to force liquidation.

Absolute comedy. @solendprotocol is a “decentralized” lending protocol based on Solana. It has “voted” for a whale account to be taken over with emergency powers in order to avoid forced liquidation. “Decentralized” is a name only. pic.twitter.com/Vrua3dFoES
Dylan LeClair (@DylanLeClair_ June 19, 2022

Others, on the other hand anticipate Solana’s ecosystem to grow like Ethereum’s after the 2018 bear markets. Spencer Noon, co-founder of cryptocurrency-focused Variant Fund, said:

“Solana is home to a vibrant developer community and downtime problems can be solved. It will become apparent in retrospect.com You should do your research before making any investment or trading decision.
https://cointelegraph.com/news/sol-price-eyes-75-rally-as-solana-paints-a-bullish-reversal-pattern

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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