SOL traders looking to make a profit can enter the market at this level

As expected in the previous article, Solana (SOL) continued its sell-off in a bearish channel towards its five-month support trendline before picking itself up from there.

SOL was approaching a critical area of ​​value at the time of writing. Any close above the pattern and the 20 EMA (red) would position SOL for a possible test of the $105-$110 range near its 50 EMA (cyan). Defending the $85 mark would be vital to bring about a change in the current trend and prevent further downfall. At the time of writing, SOL was trading at $90,2235.

SOL Daily Chart

Source: TradingView, SOL/USD

The recent bearish phase saw a whopping 71% retracement as it penetrated vital price points, forming two bearish flags in the past three months. As a result, the price action dropped below the 200 EMA (yellow). So this reveals a likely start of a long-term downtrend. In addition, on February 24, SOL hit its lowest point in six months.

During this phase, the EMAs fell below the 200 EMA in the short term. Also, the distance between 20 and 50 EMA is almost overloaded after the current losses. So a possible bullish comeback in the coming days could be conceivable as the distance between these lines narrows.

Also, SOl has shown a strong rejection of lower prices in the past five days as it approached its six-month support at the $85 level. Accordingly, it witnessed a bullish pin bar which reaffirmed the bullish intentions.

A close above the down channel’s upper trendline would be a strong trigger point to enter a buy position, while SOL would test the $105 mark before a possible pullback. Should the bulls decline, then a rest period of the five-month support (dashed, yellow) before reaching the above levels should not surprise investors/traders.

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Source: TradingView, SOL/USD

The RSI’s pattern breakout could find resistance at the 46 point ahead of a midline test, which could open a recovery window for the bulls. The bulls need to capitalize on this momentum to finally reverse their longstanding resistance at the 20th EMA.

In addition, the MACD histogram was in a tight phase and would most likely take a volatile stance in the coming days. Although the lines showed a bullish edge, they needed to approach the centerline to reconfirm a strong position.

Conclusion

A strong convergence is observed after looking at buyers’ willingness to enter at the $85 support. Any close above $94 would brighten up the possibilities of a $105 restest.

Besides, considering the impact of the broader sentiment of Bitcoin’s move would also be vital in making a profitable move.

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