Solana is seeing some buying resurgence on Saturday, as it reverses Friday’s temporary drop to near the $127.50 region.
SOL bears fought back the control a day before, tracking the downbeat tone across the crypto market, in light of the blow from China. The People’s Bank of China (PBOC) issued a notice, imposing a ban on all crypto transactions as it will be considered illicit financial activity.
At the time of writing, SOL price has recaptured the $140 mark, adding about 1% on the day, although remains on track to book the second straight weekly loss.
Looking at Solana’s daily chart, SOL bulls are challenging the falling trendline resistance at $148 after two failed attempts earlier this week.
If SOL bulls manage to find a strong foothold above the latter on a daily closing basis, then it would confirm an upside breakout from a falling wedge formation.
SOL price has been trending within the bullish continuation pattern ever since it recorded all-time highs at $221.38 on September 9. The price has been forming lower highs and lower lows, carving out a falling wedge pattern on the said timeframe.
The 14-day Relative Strength Index (RSI) is inches higher above the midline, allowing room for more upside.
Therefore, the wedge breakout would open doors for a rally towards the $200 mark. Ahead of that the horizontal 21-Daily Moving Average (DMA) at $159.40 could test the bearish commitments.
Should the wedge hurdle emerge as a tough nut to crack SOL price could see a retracement towards the upwards-sloping 50-DMA at $110.50.
The next downside target is seen at falling trendline (wedge) support at $100.60, below which a fresh downswing could kick in towards the mildly bullish 100-DMA at $71.54.
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