Both buyers and sellers have been unable to get control of Solana (SOLpricing )'s recently. Daily charts have shown a narrative of uncertainty, with the emergence of doji candles indicating no clear trend. After a precipitous drop, prices have been moving more slowly, signalling that bearish momentum is ebbing.
Recent price activity has not been promising, despite cautious confidence among bulls. Buyers had a hard time breaking over the $21 resistance level. As breaking through this barrier is a significant step towards $SOL 's bullish goals, it has been a focal point for traders.
According to #Coinmarketcap , the current price of #SOL is $19.05, representing a decrease of 1.6% over the previous 24 hours and a drop of 5.2% over the last 7 days. While these numbers look bad at first glance, there is still reason to believe that the market will soon begin to trend upwards again.
Technical experts have seen a potentially inverted head and shoulders pattern on the daily time frame chart, providing some optimism despite the market's volatility. The completion of this pattern is frequently interpreted as a bullish reversal indication, suggesting that SOL may be headed for brighter times.
Left shoulder, head, and right shoulder are the three primary components of the pattern. The latest price drop in SOL is interpreted as the right shoulder being fully formed, which might lead to a rally in the near future. If SOL manages to maintain a price below $19, we may see a retest of the neckline resistance around $20.80.
The inverted head and shoulders pattern may provide some encouragement, but investors should proceed with caution. The Relative Strength Index (RSI) has been stuck below the 50 mark, indicating that bearish sentiment persists, for some days now. In addition, despite many efforts throughout the month of September, the On-Balance Volume (OBV) has been unable to break past local resistance, suggesting that sellers may still be in control.
A price research states that a compelling break of the $18.58 barrier by SOL would convert the market structure negative. Until then, a short-term consolidation range is still a distinct possibility before SOL makes a possible upward move. But, the available data implies that sellers are not yet prepared to give up control.
Although the appearance of an inverted head and shoulders pattern gives bullish traders reason to be optimistic, they should proceed with care because major indications point to continuing market instability. If SOL is going to be able to break out of its trading range and start heading upwards, the next few days will likely be decisive.
