Solana price steady as traders spot ‘extremely’ bullish patterns

Solana price has crawled back this week as cryptocurrencies rebounded and as on-chain data showed robust performance.

The Solana (SOL)token rose to $163.8 on Friday, its highest swing since June 7th. It has rebounded by 32% from its lowest point this month. Solana’s recovery happened as on-chain data showed that its network was doing well. Data by DappRadar showed that the network’s unique active wallets, volume, and transactions rose this week.

Solana’s meme coins like Dogwifhat and Bonk also rallied while the network continued to dominate in the decentralized exchange (DEX) industry. For example, WIF’s 24-hour volume was $842 million, higher than Dogecoin’s $682 million and Shiba Inu’s $751 million.

Data shows that Solana DEX networks handled over $13.2 billion in the past 7 days while Ethereum’s volume was $11.9 billion. Some of its top-performing DEX platforms are Raydium, Orca, and Jupiter.

Encouraging Solana price patterns

Meanwhile, crypto traders are optimistic that Solana price will continue rising, citing numerous technical patterns. 

First, Solana has formed a symmetrical triangle pattern that is nearing its confluence. Since this triangle came after the token rallied, it can be said to be a bullish pennant pattern. In most cases, an asset makes a bullish breakout when this pattern happens.

Second, Solana found a strong double-bottom pattern at $120.50. It failed to break below that level two times in April and in June and July. A double-bottom is often seen as a highly bullish chart pattern. 

Third, Solana has constantly remained above the 200-day Exponential Moving Average (EMA), a popular support level in technical analysis.

Additionally, momentum indicators show that the token has more room to run before it gets overbought. The Relative Strength Index (RSI) has just crossed the neutral point of 50 while the Money Flow Index (MFI) is approaching its overbought point at 80. 

Solana has also moved to the 61.8% Fibonacci Retracement level. Therefore, if these patterns work well, there is a likelihood that the Solana price will jump to the resistance point of $200, its highest point in May.