SOL Escapes a Negative Trend but Is Not Out of the Woods Yet

The cryptocurrency analyst Bluntz shared in an X post earlier today that the price of Solana (SOL) was in an interesting situation from a technical standpoint. On one hand, the altcoin’s price is attempting to break out of a bearish structure. Meanwhile, SOL was also bouncing off of a key uptrend that had started all the way back in January of this year.

interesting PA on $SOL here.

its trying to break bearish structure with a downtrend break, 4h IHS and bouncing from key january uptrend pic.twitter.com/0WcFGvnghf

— Bluntz (@Bluntz_Capital) September 29, 2023

Bluntz’s post follows SOL’s break above a steep negative trend line that had formed on the altcoin’s charts after it had printed lower highs throughout the past few weeks. As a result of this breakout, the altcoin’s price was able to flip the 9-day EMA line into support as well.

Daily chart for SOL/USDT (Source: TradingView)

At press time, SOL was attempting to challenge the 50-day EMA line at $20.22. It was able to break above this level earlier in today’s trading session, but had since pulled back to trade below the technical indicator. If SOL is able to close today’s trading session above the 50 EMA line, then the cryptocurrency’s bullish momentum may continue in the following few days.

Subsequently, SOL may flip the $22.20 resistance level into support. Thereafter, continued buy pressure could elevate the altcoin to a valuation of $25.55 per token.

Conversely, a rejection from the 50-day EMA line in the upcoming 48 hours could put the altcoin at risk of retesting the $19.35 support level. If the sell volume persists at this point, then only the positive trend line highlighted in Bluntz’s post stands in the way of the altcoin dropping to as low as $17.15.

At press time, CoinMarketCap data indicated that SOL was able to print a 4.62% gain during the past 24 hours. This made SOL one of the best performers in the top 10 list, and elevated the altcoin’s price to $20.13.

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