Solana Price Analysis: SOL Anticipating Huge Move, But Will Bulls Take Control?

20.10.2021 / Payment system news

Key Support level: $142

Key Resistance level: $170 

Solana (SOL) has been consolidating inside the blue pennant since September 9th, when the price reached an all-time high of $216. SOL looks primed to break out of this formation any time now. The struggle between the bulls and bears will be decided once the price passes the key resistance ($170) or support ($140) levels. The tension builds up for an eventual breakout as the price approaches the apex of the triangle.

Chart by TradingView

Technical Indicators

Volume: The volume has been flat ever since the price entered the current pennant. The next move can be in either direction at this point.

RSI: The RSI gives a slight bullish bias due to the higher lows. However, it also needs to register a higher high before the up-trend is confirmed. 

MACD: The histogram on MACD is bullish, but the moving averages have not formed a bullish cross yet. As soon as that happens, the bias can turn positive, particularly if the price breaks above the blue pennant. 

Chart by TradingView

Bias

Neutral. It is always best to wait for a break above or below the pennant before assuming a narrative. As such, despite some early signs that SOL can turn bullish, this bias has to be confirmed first with a clean break from the pennant. 

Short-Term Price Prediction for SOL Price

It’s likely for SOL to break from this formation before the end of October. The targets in such an event are stated at the start of this analysis for either scenario, bullish or bearish. A clean break beyond those levels can lead to a strong rally or correction, depending on how the market reacts.