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The fear, uncertainty, and doubt (FUD) surrounding the cryptocurrency market amidst the ninth largest cryptocurrency, Solana (SOL), is continuing its movement above the $22.4 support level. With its rise, SOL has transformed into the star altcoin of the bear market, bouncing twice from the $22.4 support in the past three weeks due to the accumulation by market participants. Upon closer examination of Solana’s daily timeframe price chart, it can be seen that these bounces have resulted in the formation of a double bottom pattern.
Solana Price Analysis
The formation of a double bottom pattern by Solana on the daily timeframe price chart stands out quite prominently. This formation is typically observed when the market hits bottom and provides strong support for sustainable rally to the buyers.
After bouncing from the $22.4 level on August 7, the price of SOL increased by 8.8% to reach $24.36, which is close to the current levels. Under the influence of this chart formation, it can be expected that the leading altcoin’s price will rise by 5.8% to break and surpass the overall resistance line at $25.7. If this resistance line is breached, there could be an increase in buying pressure, causing the price to rise up to $29-30, representing a percentage increase of 24% or even more.
SOL’s Price Could Drop to $18 Levels
On the other hand, after a new pullback to the $22.4 support, the price of the altcoin may start moving in a sideways and narrow range. Despite the buying pressure that will push the price upwards, Solana’s price moving sideways indicates weak bullish momentum.
Sellers surrounding Solana may take advantage of this uncertainty and push the price below the $22.4 support. In such a scenario, a pullback triggering a drop to $18.7 could be expected.
Furthermore, the rise from the lower band of the Bollinger Band (BB) indicator provides additional support to the buyers. Moreover, the potential for the Relative Strength Index (RSI) slope on the daily price chart to rise above 60 reflects strong sentiment among buyers, signaling a positive indication.
