Solana (SOL) price action looks completely bullish, but at the same time has been sluggish as it fails to meet buyer demand.
Solana is currently trading sideways, forming an ascending triangle pattern. The 50-day EMA acts as its support level. Buyers went on a shopping spree last night, which sent volumes soaring to 140 per cent.
The bulls are controlling SOL prices higher, while the bears are trying to take over. The massive sell-off in Bitcoin affected other altcoins including SOL. If the current momentum is not turning in a particular direction, the SOL can get stuck in between.
Bulk buying activity drives up transaction volume
Price action is currently showing higher highs specifically for SOL, but the bears were able to push it into the market in the $46 area. With this in mind, the SOL is currently swinging in an ascending triangle pattern.
Despite being in a triangle pattern, SOL has plunged 4.68% or is trading at $39.76 as of this writing, according to CoinMarketCap.
Uncertainty lingered over the past few days as the altcoin price edged up near the trendline, prompting buyers to buy aggressively, boosting the coin’s total trading volume to 140% or 1 billion overnight Dollar.
Recently, the RSI of SOL broke out of the downtrend after hitting the oversold mark. With this in mind, the bulls are inclined to push the price of the coin above the resistance line.
SOL is currently dabbling in one-way waters and buyers should wait for clues on a directional move.
SOL price sandwiched between bears and bulls
The SOL price has made higher lows and lower highs, indicating a huge squeeze on the coin. However, Solana recently attempted a push higher on Aug. 8, making a new low-high of $43.77.
While the coin is working tirelessly to recover losses, the market is now dominated by bears. In light of this, investors should expect SOL prices to consolidate before breaking the $38.22 support.
Doing so could trigger a 17% plunge in the SOL, which could secure a return to $31.66. Even though this level might act as a support line, it could be corroded by the liquidity found below it.
Once this level is breached, the coin is likely to return to the weekly support level of $24.52 before gathering liquidity below that level that formed on June 13-19.
However, if SOL price can manage to break above the $38.22 support and successfully break the $47.43 mark, then this will certainly challenge the bullish thesis.
SOL total market cap at $14.5 billion on the daily chart | Source: TradingView.com Featured image from Gettotext, Chart from TradingView.com