The completion of an inverted head and shoulder pattern set the SOL price for a sustainable recovery.
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Embracing the tradition of “Uptober,” the SOL coin price exhibited a notable rebound from the $20 psychological mark. Within two weeks, the asset has climbed from $21.1 to its current trading price of $26.19, marking a total gain of 28%. Adding fuel to this rally, the coin decisively broke above the neckline resistance of an inverted head-and-shoulders pattern, a bullish reversal formation that bolsters a significant bullish recovery.
Also Read: Solana Surprises with 10% Jump, Next SOL Price Target $30
Will SOL Price Surpass the $30 Mark?
- Under the influence of an inverted H&S pattern, the SOL price recovery is likely to be $32
- The midline of the Bollinger band indicator acts as dynamic support for rising price
- The 24-hour trading volume on the Solana coin is $604 Million, indicating a 16% gain.
Source-Tradingview
Amid increasing bullish sentiment across the crypto space, the Solana price extended its recovery that began in mid-September. As per technical analysis, the formation of an inverted head-and-shoulders pattern has played a significant role in this rally.
Such patterns are commonly seen at major market bottoms and signify key turning points in trends. On October 19th, the SOL coin price punctured through the pattern’s neckline resistance at approximately $24.6.
Currently trading at $26.9 with an intraday gain of 8%, the coin is showing a strong follow-up to this breakout. The persistent buying pressure suggests the price could extend its rally to $32, offering a prospective gain of 20%.
In the last five weeks’ rally, the SOL price experienced two pullbacks, each retracting nearly 50% of the preceding gains. Traders should therefore consider this 50% retracement level as a potential safety net for any upcoming pullbacks.
SOL Recovery Outperforms BTC
Source: Coingape| Solana Vs Bitcoin Price
A three-month performance analysis reveals that the Solana price recovery has outpaced Bitcoin, the largest cryptocurrency by market cap. Since mid-September, the SOL price has demonstrated a robust pattern of higher highs and higher lows, whereas the Bitcoin price has seen a more modest uptrend.
- Bollinger Band: An upswing in the upper band of Bollinger band indicators shows aggressive bullish momentum.
- Average Directional Index: The ADX slope at 27% indicates the buyers have enough strength to prolong the current recovery.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
