The Ethereum Killer has displayed a significant price action this past week as the SOL price has witnessed inflows worth more than $24 Million compared to its prime competitor, the Ethereum price, which mostly displayed outflow during the week, also highlighting low interest among investors for the top altcoin.
The Solana price has regained the spotlight as it has recorded its biggest flow of the year. Further, the coin has gained over 120% in value this year, indicating a positive outlook for the future of this controversial crypto.
The price was constantly hovering at its resistance level at $19.07. After multiple attempts, the SOL price finally managed to break out of it. The Solana price was then seen trading in a consolidated range of $19.07 as its support and $19.79 for a brief period of time.
The market then gained momentum and broke out of the resistance level at $19.79, following which the coin gained momentum, and the price surged from $19 to over $24 within a week. After the price jump, the coin has formed a descending channel, forming a flag pattern, and has been trading within it.
The long tail of the candle from the pattern displays new buyers stepping in. The 200-day EMA is moving within the support zone, supporting the bulls. Further, the chart displays a morning star pattern, indicating the possibility of a bullish movement soon.
The RSI averages constantly traded above the mid-point for ten days, indicating a bullpower in the market. Further, the averages displayed a sharp decline in the chart and were seen trading sideways, indicating a massive ongoing price action.
Will SOL Price Regain Value?
If the bulls gain power and push the price above $22.43, the price will prepare itself to test the upper resistance of $23.33 soon. Further, if the market gains power, the price will make a run and test its resistance level of $24.22 in the coming time.
On the contrary, if the bears take control over the bulls and fail to hold the price above $22.43, the price will lose momentum and fall towards its support zone of $21.15. Moreover, if the market does not gain momentum, the price will continue falling and will soon test its lower support level of $20.45.
Credit: Source link