Will SOL Coin Give Breakout from Inverse Head & Shoulder Pattern?

• The SOL token has made an inverse head and shoulder pattern in the daily timeframe.
• It is currently trading at $20.3 with an increase of 5.5% in the last 24 hours.
• The token is down from its all-time high by 92.25%.

The SOL token marked its yearly high of $32 in the middle of July when the token was overbought at the resistance level. After that, the token started to fall and reached the downward support level of $17.

It is currently trading with a surge in the trading volume by 12% in a day.

The token recorded its all-time high on 7th Nov 2021, when it was priced at $260.06.

Its present circulating supply is 412.84M SOL, which is 73.90% of its total supply.

The SOL token has a current market capitalization of $8.38B. The market cap has increased by 5% in the last 24 hours. Its current daily trading volume of the token is $257.55M.

Sentiment Analysis 

The total market volume of the token has surged by 7.07% in the last 1 day. The total bullish sentiments have increased by 74.84% and the total social engagements have recorded a rise of 35.44%. The overall sentiments indicate a bullish price action.

The total bearish sentiments have also increased by 78.44%. It shows that some investors are also bearish about the price as the price is approaching towards the resistance level of $20.4 from where the price may get rejected and come down.

Technical Analysis (Daily – 1D) 

Presently, The price after taking the support has created an inverse head and shoulder pattern, where the price is currently trading at the neckline from this point. If the price gives a breakout above the neckline, it will be a bullish scenario for the price. The price in a bullish scenario can easily reach the level of $25.

Also, If the price gets rejected from the neckline or the resistance level of $20.4, it will break the pattern. It will continue the downtrend, and fall again to the support level of $17. 

Relative Strength Index (RSI)

The RSI line is presently moving at 55.49 points and the SMA 14 is moving at 47.90 points. The RSI is currently above the neutral level 50, which shows there is some ongoing buying activity happening in the token. 

Moving Average Convergence/Divergence (MACD) 

The fast blue line moving average is above the red slow line moving average and the volumes in the histogram are showing some increase in the volumes. If the volume keeps on increasing significantly, the price will be bullish. Suppose the volume decreases, the price will be bearish again.

SOL Live Chart: 

Conclusion: 

We have to wait for the price to give a major move. If the price gives a breakout from the neckline of the inverse head and shoulder pattern and the resistance level with an increased volume, it will surely be bullish.

In case the price gets rejected from the neckline or the resistance level, it can drop again to the support level of $17.

Technical Levels : 

Support: $15, $14 And $17 

Resistance: $20.4, $25 And $27

Disclaimer: 

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.