Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
SOL finally broke out of its bearish channel after it rose from the crucial $85 support. Meanwhile, the bulls managed to find a close above the 20 EMA (red).
A strong close below the yellow trendline would reinforce a bearish divergence and position SOL to test its Point of Control (POC, red) before picking itself up to retest the $105 level. At the time of writing, SOL was trading at $100.22, down 3.12% in the past 24 hours.
SOL Daily Chart
Source: TradingView, SOL/USD
The recent bearish phase saw a staggering 71% retracement as SOL fell through vital price points. As a result, it fell below the 20-50-200 EMAs, while the 20 EMA was an important area of value for traders. After forming two bearish flags during this phase, buyers have finally started to build pressure from their POC.
The bulls were visibly excited about maintaining the six-month horizontal support at the $85 mark. Thus, they rallied 33.3% from the six-month low on Feb. 24 and broke the long-term pattern.
As the gap between the 20 EMA and 50 EMA (cyan) gradually narrows, the bulls hinted that they would increase their leverage in the coming days. From here on, as the March 3 candlestick closes below the yellow trendline, SOL looked to the $90 for a test. Follow the samewould appear likely to topple the $105-110 range.
Also, the price has been hovering around the upper band of the Bollinger bands. This reading reaffirmed the possibility of a possible short-term relapse.
rode
Source: TradingView, SOL/USD
After a pattern breakout, the RSI reached equilibrium but still struggled to launch an unbridled rally. Over the past two weeks, it has formed a bearish divergence with the price, suggesting a likely pullback towards the 46-49 support range.
Interestingly, the MACD histogram showed increasing momentum in Taurus’ favor. Still, the lines still need to cross the midline to confirm the shift in overall sentiment. Also, the ADX was in a downtrend, revealing a weak directional trend for SOL.
Conclusion
If sellers confirm the bearish divergence near the yellow trendline, a further pullback near the $96-$90 zone is likely. After this, SOL could revive itself from its POC and retest the $105-$110 range.
Besides, considering the impact of broader sentiment on Bitcoin’s movement would also be vital in making a profitable move.
This post Here’s the Roadmap to Change Solana’s Market Trend
was published first on https://ambcrypto.com/heres-the-roadmap-to-solana-switching-its-market-trend/
