Solana’s SOL Token Shows Bullish Momentum with 21% Weekly Gain
Solana’s SOL token has been a standout performer in the cryptocurrency market this week, demonstrating a significant increase of over 21% in the past seven days. Market analyst CryptoBusy recently identified a bullish alert on the daily chart, further boosting investor confidence in the token.
Formation of Bullish Pattern Signals Upward Trend for SOL
According to CryptoBusy, SOL is currently forming a “huge pennant,” a pattern typically associated with bullish momentum. The pattern originated from a period of bearish movement that drove SOL’s price to a low of $116.98 before transitioning into a bullish formation.
Market experts are optimistic about SOL’s potential for an upward trend in the near future. As of the latest update, SOL is trading at $167.98, marking a 5.07% increase in the past 24 hours.
Resilience of SOL Price Amid Market Fluctuations
Despite a slight dip in the global cryptocurrency market capitalization, SOL has managed to maintain its price above $160, showcasing its resilience and strong price action. This positive performance has bolstered investor confidence, with many closely monitoring SOL’s trajectory to gauge its ability to sustain this bullish momentum in the days ahead.
However, the 20-day simple moving average (SMA) currently sits below SOL’s price at $145.87, prompting some doubts regarding a strong uptrend in the short term. If SOL continues to stay above the 20-day moving average, it could potentially break through the $171 mark by the week’s end.
A successful breach of this level could propel SOL towards the next resistance point at $189, last seen on May 21. Conversely, failure to maintain momentum may lead to a price dip towards $159 as the token seeks support.
Should support at $159 falter, SOL may target the 20-day moving average for further support before attempting another bullish run.
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