Solana‘s (SOL) daily timeframe price chart reveals a clear double bottom formation for the altcoin. This formation typically occurs when the price reaches a bottom and indicates a strong potential for an upward movement. A double bottom formation consists of two consecutive troughs supported by a common price level. Currently, the common price level for SOL’s double bottom formation is $22.4. The completion of this formation suggests a positive outlook for Solana.
On August 7th, SOL experienced a significant jump from the $22.4 level. This jump resulted in a 9% increase, bringing the altcoin’s price to the current level of $24.45. This rapid turnaround is closely related to the bullish sentiment generated by the formation of the double bottom.
The current price chart indicates a potential 5.8% price increase for SOL, with the initial target resistance level at $25.7. If this resistance level is surpassed, it may trigger a stronger buying momentum and push the price towards the range of $29 to $30, and eventually $32.
According to CoinMarketCap data, SOL traded at $24.52, showing a 0.16% increase in the last 24 hours.
On the other hand, the daily timeframe price chart indicates that Solana’s price is forming higher wicks and short-bodied candles, suggesting a weakening bullish momentum. Approaching the resistance at $25.7 and encountering selling pressure could result in a price drop and consolidation within a narrow range for a few trading sessions. During this consolidation, the momentum is likely to strengthen, leading to a directional movement.
The Bollinger Bands indicator on Solana’s daily timeframe price chart currently highlights a sideways market or lack of direction. The upward potential of the Relative Strength Index (RSI) indicator’s slope above 50 indicates a favorable scenario for an uptrend.