Solana (SOL) is an open-source protocol for providing decentralized financial and data infrastructure for building software applications. It is built on a new type of distributed ledger called a Trustless Ledger, which gives developers the scalability, security, and affordability required to develop and run their own decentralized applications. The Solana (SOL) price has been increasing since its launch in October of 2021, reaching an all-time high in November at a price of $26. Since then, the SOL has been trading below a long-term descending resistance line and has experienced a few swings resulting in an attempt to break the resistance line in April of 2021. However, the SOL price has failed to surpass the resistance level and is currently trading inside a bullish short-term pattern.

The weekly Relative Strength Index (RSI) gives mixed signals. The RSI is a momentum indicator used to determine whether the market is overbought or oversold and to indicate whether traders should accumulate or sell an asset. When the RSI is above 50 it suggests that bulls are dominating the market, however, the RSI for SOL is currently below 50 but is slowly increasing since early 2021.

On a shorter time frame, the technical analysis and price action of the SOL token shows that it is trading within a descending wedge. The wedge is considered to be a bullish price formation, meaning that it is likely to result in a breakout. This was further proven when the SOL price bounced at the confluence of the wedge’s support line, a $20 horizontal support area, and the 0.618 Fib retracement support level.

The six-hour RSI supports the possibility of a breakout as it has now moved above 50 and has broken out of its previous resistance line. If the SOL price breaks out of the wedge, it is likely to reach the $23.50 resistance area. However, if the SOL token breaks down below $19.80, the bullish trend will be invalid and the token is likely to drop to the $16 level. This marks the importance of the short-term movements of the Solana (SOL) price and how it could affect the long term trend.



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