However, the price dynamics have changed recently, and the bulls have hope for revenge.
Last week, the SOL price broke through the long-term descending resistance lines on the weekly timeframe. The chart shows that this line goes from the historical maximum reached by the token in November 2021, which means that it is already 600 days old. The breakdown of such long-term structures usually indicates the end of the previous trend and the beginning of a new one.
In the case of SOL, the price has most likely started a bullish trend.
Source: TradingView
The daily RSI, while supporting this breakout, is not yet confirming it. The indicator has formed a rising low and is rising, but is right around 50. This recovery started with a long lower wick, indicating increased buying pressure.
The significance of this rise is that SOL managed to reclaim the $17 horizontal level. However, after a small rebound on June 20, the price climbed above the $17 area and reached a high of $20 on June 30.
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The SOL broke the descending resistance line, which comes from the levels of April 17. A successful break of this line would confirm the bullish nature of the trend, even in the short term.
A successful break of this line would confirm the bullish nature of the trend, even in the short-term.
In addition, the daily RSI is above 50 and rising, which confirms the legitimacy of the breakout.
If the rise continues, the next resistance level will be the yearly high at $26.
Source: TradingView
Despite the bullish outlook, SOL could theoretically lose strength and fall to the downside resistance line at $18. However, there are no short-term signals indicating the likelihood of such a development.
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