Solana is trying to break out of a broad bearish trend


The Solana coin (SOL) recovered above the $13 area and began to grow. However, despite the relief rally, the long-term trend remains bearishю

The Solana blockchain coin bounced off the $17.50 resistance area on November 10 and has been falling since then amid strong pressure on the project due to its close ties with the collapsed FTX and Alameda ecosystem. As a result, on November 22, the SOL rate marked a minimum of $10.94, breaking through the horizontal resistance area of $13.

However, after that, the coin was able to make a rebound and recover above $13, turning this area into support at the time of writing.

If the growth continues, the nearest resistance will come into play around $17.50.

Will SOL continue the relief rally

As the technical analysis of the 6-hour chart shows, the picture on this timeframe is painted in bullish tones. Firstly, the Solana exchange rate has made a bullish breakdown of the downward resistance line, and the RSI index gives signals of bullish divergence (green line).

Despite the decline of the coin over the past day, the trend line of bullish divergence remains unbroken, and the price bounced off the support area of $13. Thus, the short-term bullish trend is still in force.

Accordingly, the situation on the 6-hour chart supports the growth of SOL in the direction of $17.50.

Источник: TradingView

Solana's Underlying Trend Remains Bearish

Despite bullish signals on short-term timeframes, the long-term trend remains bearish. The main reason for this is the breakthrough of the long-term support area of $32, which has been present on the chart since July 2021.

In addition, the weekly RSI dropped below the 30 mark and made a bearish breakdown of the bullish divergence trend line (green line).

Also, a fresh blow to SOL was the announcement of the Binance crypto exchange about its intention to exclude from the listing three trading pairs with the participation of the coin Serum (SRM), which is a partner of Solana.

In general, the long-term outlook for the coin will remain bearish until the price can recover above the $32 area. Meanwhile, the nearest support is located around $4 (average price).

Источник: TradingView

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