Solana (SOL) is experiencing a consolidation phase near the $180 mark, with expectations for a breakout in the near future. Despite a slight loss the previous day, SOL is currently trading with modest gains. The acquisition of Bitski wallet platform by Solana wallet Phantom has impacted the momentum, with the continuation of upside momentum anticipated after a temporary pullback.
While SOL trades with a mild bullish bias, the formation of a spinning candle suggests a lack of buying interest among traders. As a result, it is important to monitor for valid buying signals before entering a long position.
At present, the SOL/USD pair is trading at $180.23, reflecting a gain of 1.14%. CoinMarketCap data shows that Solana’s market cap has dropped 1% to $80.54 billion due to a dip in price.
From a technical standpoint, SOL has been in a short-term uptrend since testing the swing low of $118.89 on May 1, 2024. The price has rallied by nearly 58% since then. Recent price action indicates a sideways momentum following the high of $188.79 reached on Wednesday. Bulls may need a breather before resuming the upside momentum.
The formation of an ascending triangle, which is a neutral pattern, suggests a battle between bulls and bears. Additionally, the appearance of a small candle after a red candle in the previous session indicates a pause in the price decline.
If the bulls can sustain above today’s low of $175.12, there is potential for the price to rise towards $180.00 or higher. Conversely, Solana could fall towards the low of $167.81 recorded earlier this week.
Since reaching a low of $78.87 in January 2024, the SOL price has been in a bullish trend. The momentum intensified above the 21-day Exponential Moving Average (EMA). After a negative divergence in the relative strength index (RSI), signaling a potential correction, the price found support near the lower trend line of the ascending triangle and subsequently surged to $188.79.
With the RSI still trading above 63, far from the overbought zone, there is a possibility of an upside breakout in the triangle. In such a scenario, the target for the upside movement could be the high of March 18 at $210.03. However, if the price drops, immediate support may be found at the 21-day EMA.