Solana’s SOL token has been a bright spot in the crypto market this week, as it witnessed over a 21% gain in the last seven days. This uptick comes amidst a bullish alert spotted on the daily chart by market analyst CryptoBusy.
#Solana $SOL HUGE PENNANT on the 1D chart!
Watch out for this price action! https://t.co/GF2BfV0Dtv pic.twitter.com/Hlh73PKHq9
— CryptoBusy (@CryptoBusy) July 18, 2024
According to CryptoBusy, SOL presently forms a ‘Huge pennant,’ a pattern often indicative of bullish momentum. Historically, the pennant pattern stemmed from solid bearish momentum that pulled SOL’s price to a low of $116.98 before consolidating and forming the bullish pattern.
Since then, market experts have speculated on an uptrend for the SOL token soon. Meanwhile, the value of the SOL token exchanged hands at $167.98 as of press time, marking a 5.07% gain over the last 24 hours.
SOL Price Action Defies Market Dips
Despite the global crypto market cap eyeing modest dips earlier today, SOL managed to show resilience and strength in its price action as it maintained its price above the $160 level. This positive price movement has by far instilled confidence in investors, who are now closely monitoring SOL’s performance to see if it can sustain this bullish momentum in the coming days.
However, clearing doubts in that air, the 20-day Simple Moving Average (SMA), positioned below SOL’s price at $145.87, projects a robust uptrend in the short term. Should SOL retain its level above the 20-day SMA, the asset could potentially break above its current barrier around the $171 level by the end of the week.
A breach above this zone could further push SOL’s price toward its next resistance, positioned at $189, last observed on May 21. Conversely, if the upper band of the pennant chart pattern proves formidable enough to break through, SOL might witness its price dip to the $159 level to find support.
Nevertheless, should this support falter, SOL could aim for the 20-day SMA as the next support level before attempting another bull run.
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