In 2021, Solana experienced a massive growth period thanks to its low transaction fees and high speed. The NFT frenzy also supported its growth. However, it later faced bear markets and plummeted to single-digit prices due to the bankruptcy of its biggest financial supporter. But now, it is showing signs of recovery.
The SOL Coin price has been relatively strong for the past 3 weeks while its competitors continue to decline. The horizontal support level has been confirmed at $18. The price, which has been trading in a long-term horizontal range between $18 and $32, is now closer to the bottom level. The inability of BTC price to stay above $26,500 has greatly contributed to its performance.
Readings on the weekly chart show that although the price has lost critical peaks, it has significantly increased since the beginning of the year. During the increase, SOL Coin broke out of both the $18 horizontal range and the long-term descending resistance trend line that has been in place for 600 days.
After the recent breakout, we saw the price reach $32 before experiencing a major drop. Then, the price dropped to $18 as it confirmed as a resistance and bounced back from there.
After the volatile movement, the price formed a range between $18 and $32. Generally, after breaking away from this range, the price has been seen testing the bottom and top levels multiple times.
The weekly RSI supports a break below the bottom. However, readings on the daily chart provide clearer bullish signals. On September 11th, the cryptocurrency experienced a recovery and confirmed an upward support zone. On September 18th, SOL’s price broke out of a descending wedge formation, which is typically considered a bullish signal. This breakout could initiate a new rally.
The daily chart also surpassed the resistance line of the RSI. In light of all this, a 40% recovery seems possible. However, if the rising support line is lost and BTC negativity gains momentum, we may see a retracement to the second support area of $14.
Important data is expected on Friday, and for now, on-chain activity suggests a potential new selling wave for BTC.