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The struggle to rise above the $235 mark hints at a short-term retracement in the SOL token prices.
The Solana protocol was designed to ease decentralized application ( DApp) creation. Its goal is to improve the capacity by introducing a Proof-of-History (PoH) consensus, which is paired with the underlying proof-of-stake (PoS) consensus of the blockchain.
Solice, a new Solana-based startup, is a cross-platform PC and virtual reality (VR) game built in the mold of Decentraland and The Sandbox. It has raised $4.3 million from leading venture capital firms such as Three Arrows Capital, DeFiance Capital, and Animoca Brands.
Let us now move ahead to the technical analysis of the Solana token.
Past Performance of SOL
The SOL token price has been steadily moving in an uptrend making new higher highs and higher lows. Thus, resulting in the formation of a rising channel in the daily chart. Moreover, the recent bullish reversal shows a price jump of more than 20 percent in the past week.
However, the price action struggles to rise above the $235 resistance level. Hence, the struggling price action results in the formation of an evening star candlestick pattern.
SOL/USD Daily Chart
SOL Technical Analysis
With the demand found near the $190 support zone twice, the SOL coin price action forms a double bottom pattern as well. Moreover, the neckline of the pattern coincides with the $235 resistance. Hence, the breakout of this level will increase the chances of the price breaking the $300 barrier.
The RSI indicator maintains a bullish sentiment as the slope crosses above the central line (50). However, the slope shows slight retracement from the 60 percent mark. Nonetheless, the indicator gives a buy signal.
The MACD and signal lines cross above the neutral line with the bullish crossover in the daily chart. Hence, the indicator shows increasing bullish powers with the rise of positive histograms.
Upcoming Trend
The SOL coin price keeps rising within the parallel channel in the daily chart. However, the resistance from $235 results in the evening star pattern. Hence, traders need to keep an open mind while the prices struggle to rise.
Nonetheless, the rising demand for the SOL token prices hints at the bullish breakout. Furthermore, the technical indicators showcase a rise in the underlying bullishness. Hence, a bull run to the $300 mark is possible.