Price movement for Solana (SOL) looks outright bullish but at the same time sluggish as it’s unable to keep up with buyer demands.
Solana is currently trading sideways forming an ascending triangle pattern. The 50-day EMA serves as its support level. Buyers were on a shopping spree last night which kickstarted the volume pumping it up at 140%.
The bulls are in control of SOL price moving it higher, while the bears are trying to take over. Bitcoin’s massive sell-off has impacted other altcoins including SOL. If the current momentum doesn’t swerve in a specific direction, SOL could be stuck in between.
Massive Buying Activity Pushes Trading Volume Up
The price action is currently exhibiting higher-highs specifically for SOL, but the bears were able to market it at the $46 zone. With that in mind, SOL is currently swinging within the ascending triangle pattern.
According to CoinMarketCap, while stuck within the triangle pattern, SOL has nosedived by 4.68% or trades at $39.76 as of this writing.
The uncertainty lingering with altcoin prices as it moves up inching near the trendline for the past couple of days has propelled buyers to buy aggressively pumping up the coin’s total volume at 140% or $1 billion overnight.
Recently, SOL’s RSI breached the downsloping trending after it has touched the oversold mark. With that in mind, the bulls have the propensity to push the token’s price hovering above the resistance line.
SOL is currently wading through unidirectional waters and buyers should wait for a cue towards the directional move.
SOL Price Squeezed In Between Bears And Bulls
SOL price has seen both higher lows and lower highs which reveal a tremendous squeeze for the coin. But, Solana’s most recent attempt on August 8 to push higher has set a new lower high spotted at $43.77.
Although the token is fighting relentlessly to recover its loss, the market is now dominated by the bears. In this light, investors should anticipate a consolidation for SOL price and followed by a breach of the support level found at $38.22.
Doing so might potentially trigger a crash of 17% in SOL which may ensure a revisit at $31.66. Even though this level may function as a support line, it might be corroded because of the liquidity found below it.
Once this level is breached, the coin might return to the weekly support level of $24.52 and then collect the liquidity that rests below it which was formed from June 13 to 19.
However, if SOL price can successfully jump above the support line of $38.22 support level and manage to break the hurdle set at $47.43 hurdle, then this will definitely challenge the bullish thesis.
SOL total market cap at $14.5 billion on the daily chart | Source: TradingView.com
Featured image from Gettotext, Chart from TradingView.com