SOL Technical Analysis: Here’s How Failed Bulls Prepare A Comeback

The SOL price action hints at the formation of the Cup and Handle pattern to ignite a new recovery rally. So, should you buy it? The August second-half sell-off plunged the SOL/USDT pair to the $30 support level. However, after obtaining proper support at this level, the altcoin rebounded with a rounding bottom pattern, but the increased selling at $36.79 resulted in a bullish failure. The ongoing downfall approaches the $30 support and warns of a bearish fallout. Key Points: The Solana price action shows a failed rounding bottom pattern in the daily chart. The sellers regain the 20-and-50-day EMA slope. The intraday trading volume in Solana is $14.16 million. Source – TradingView SOL Technical Analysis The rounding bottom pattern is quite well known to revert the market trend. Thus, under the pattern’s influence, the recent bullish recovery accounted for 24% growth and breached a local resistance of $37. The bullish breakout from the $37 neckline resistance could have surged SOL prices to the $42.5 mark. However, on August 13th, the crypto market faced sudden selling pressure, resulting in the pioneer cryptocurrency Bitcoin dropping to the $20,000 mark and the SOL price tumbling 11.6%. This downfall undermined the bullish pattern formation and plunged the SOL price to $32.6 support. Though the coin price is 1.6% up today, a low volume bullish candle indicates a weakness in buyers’ commitment. Thus, with sustained selling, the...