Solana’s SOL Token Sees Bullish Momentum
Solana’s SOL token has shown a strong performance in the cryptocurrency market this week, with a significant rise of over 21% in the past seven days. The bullish trend was identified by market analyst CryptoBusy, who spotted a positive alert on the daily chart.
Formation of Bullish Pennant Pattern
CryptoBusy highlighted that SOL is currently forming a “huge pennant” pattern, typically indicating bullish momentum. This pattern emerged from a period of bearish movement, bringing the price of SOL down to $116.98 before consolidating and forming a bullish pattern.
Market experts speculate that the SOL token is likely to experience an upward trend in the near future. At the time of writing, SOL was trading at $167.98, showing a 5.07% increase in the last 24 hours.
Resilient Price Action Despite Market Fluctuations
Despite a minor decline in the overall cryptocurrency market capitalization, SOL has managed to maintain a price above $160, demonstrating its resilience and strength in the face of market fluctuations. This positive price action has bolstered investor confidence, with many closely monitoring SOL’s performance to gauge its ability to sustain this bullish momentum in the days ahead.
Despite the 20-day simple moving average (SMA) being below the current SOL price at $145.87, doubts about a strong uptrend in the short term have been dispelled. If SOL can stay above the 20-day moving average, the asset may surpass the $171 mark by the end of the week.
A breakout above this level could propel SOL’s price towards the next resistance at $189, last seen on May 21. However, failing to break through this resistance may result in a drop in SOL’s price to around $159 as it seeks support.
In the event that this support level is breached, SOL may target the 20-day moving average as the next support level before attempting another bullish run.
The future of SOL’s price movement remains uncertain, with various factors at play. Investors are advised to closely monitor the market and stay informed about any significant developments that could impact SOL’s performance.
