On April 17, Solana hit a new high this year, but bounced off the high of the current range.
What does this mean for SOL. SOL is a native token of the Solana blockchain, created by Anatoly Yakovenko.
It uses a unique consensus mechanism that is a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH) algorithms.
Last year, Solana Mobile introduced its own Android-based Saga mobile phone to the web3 space..
In January of this year, Solana opened pre-orders for smartphones for users from 33 countries, and last week announced the start of the first sales.
SOL hits range ceiling
According to the results of the technical analysis of the daily chart, the coin is trading in a range between $20.50 and $26.00.
On April 17, SOL hit a new high this year at $26.00, but failed to make a bullish breakout and dropped significantly, forming a bearish shooting star candle (red icon).
This pattern is considered bearish and features a long upper wick, which is a sign of strong bearish pressure near the highs..
The fact that the candle appeared at the upper border of the range further increases its significance..
However, it failed to close lower than the previous day’s lows, and this makes it somewhat weightless.
However, the daily RSI momentum indicator continues to rise and is above the 50 mark, confirming that the bulls have not lost momentum.
In general, the daily timeframe reflects an uncertain picture. Immediate support is at $20.50 and the next long-term resistance is at $36.50.
Solana: first correction, then growth
A shorter, 6-hour timeframe warns that the market may first start a correction and only then resume growth.
A bearish divergence on the 6-hour RSI (green line) speaks in favor of such a scenario..
A bearish divergence occurs when the price makes an up high and the RSI makes a down high..
This means that the price increase is not supported by the current momentum and this could lead to a sharp fall.
If this happens, SOL may sink towards the $22.70 horizontal area and the Fibo support level.
Thus, the most likely scenario is a decline in the direction of the $22.70 support, after which the market should start growing towards $26..
A 6-hour close below $22.70 could mean a correction deepening to lows near $20.
Meanwhile, the rise of SOL above $26.00 will confirm that the fall has already ended and now we can expect the price to strengthen in the direction of $36.50.