The $SOL price has come up against the biggest resistance of this bull market. Will the price be rejected, or can a breakthrough and confirmation above, spark its next possibly parabolic phase?
Rejection or final breakthrough?
Source: TradingView
The weekly chart for $SOL, against its $USDT pair (SOL/USDT) is showing a major cause for concern. The major horizontal resistance at $252 marked practically the top of the last bull market in 2021, and rejected $SOL over the last half of November. The price was then rejected at this level last week, leaving a long wick behind, and this week the rejection could happen once again.
Could this just be a case of a continual knocking against a particularly thick glass ceiling that will eventually give way, or could this end in an outright rejection that could send the $SOL price back down to a deeper correction, or perhaps even worse?
The one really positive element is the Stochastic RSI at the bottom of the chart. A cross up above the 20.00 level signals strong upside price momentum, and if one takes into account that there is a cross up of the indicators on the 2-week chart as well, this is a recipe for even stronger upside momentum.
$SOL approaches pivotal moment against $BTC
Source: TradingView
The SOL/BTC chart is arguably more important than its US dollar pairing. If $SOL cannot break out against $BTC, why would anyone bother to hold it into the last stage of this bull market?
That said, the chart is beautifully clear. The descending trendline, going all the way back to early September 2021, is squeezing the $SOL price action into an ever-decreasing space; trapped between this, and the major horizontal support below.
Either the trendline or the support is going to have to break. If the price action is looked at as a descending triangle, the likelihood of a breakdown is more likely.
However, once again, the momentum for $SOL is in the ascendency, as signalled by the Stochastic RSI at the bottom of the chart; and yet again, this is also the case on the 2-week chart.
Huge horizontal resistance on 2-month chart
Source: TradingView
If one then zooms all the way out into the 2-month chart for SOL/BTC, a very pronounced major horizontal resistance looms into view. It can be seen that if the resistance is not broken this coming month, the next 2-month period will not only face the resistance, but the descending trendline as well.
Of course this could be strong enough to send $SOL back down again, but if bulls are able to punch through this, the resulting explosion in favour of $SOL could really be something to see.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.