Solana builds energy to break up rigid resistance

• Solana builds energy to break up rigid resistance
• The bullish flag pattern points to 40
• Conservative traders should first wait for the market to move

Solana is a blockchain that competes with Ethereum and moves in a relatively tight range compared to the US dollar. Like many other cryptocurrencies, Solana reached a low point at the end of last year and then recovered with the cryptom market.

But the price campaign has stalled in the past few weeks. Lately it has been difficult for him to keep over $ 20 because sellers appear with every upswing.

So what does the technical image show?

Solusd-Chart of Tradingview

The interest bully tendency remains despite the latest consolidation

During the Baisse 2022, the market formed a descending triangle with a horizontal base in a range between $ 25 and $ 30. The support was finally broken when the price fell below $ 10, but buyers appeared when Bitcoin and other leading cryptocurrencies increased in early 2023.

After a rally with the entire market, Solana met with resistance in the previous support area. It now tries to remove it and forms an apparently bullish flag pattern.

bullish flags are continuation patterns. Their measured movement corresponds to the distance from the latest low to the beginning of the flag, projected by the upper trend line of the flag.

It indicates a movement of over $ 40, but the bulls should not yet hurry to a long position. Ideally, bulls should wait until the market over the resistance area closes, as this would mean that the bullish flag pattern ends. Then it makes sense to stay at the level of $ 40 and stop at $ 24.