Solana (SOL) May Be Recovering From the Downtrend

 

After some period of consolidation, there is a possibility that SOL/USD may be making a recovery attempt towards coming up above the 9-day moving average. The market started a lower swing on the 14th of August. But on the 20th of August, buyers became strong enough to prevent any further downward trend. However, this effort was only able to make the market flat. The market was therefore flat until the 25th of August when selling pressure became stronger again. And sellers push the price of the market lower again. In today’s daily trading session, buyers managed to take control of the market. However, by considering chart indicators, we should be able to predict the next likely direction of the market.

Information and Interpretations From the Indicators
In the Bollinger band indicator, the price action has come close to the lower band. The bearish candlestick from the 26th of August touches the lower band of the indicator. When this happens, there is a probability that the price action will rebound to an upper position. And to confirm this, there is a bullish momentum in the market today. According to the information gotten from the Relative Strength Index, the RSI line is trying to retrace an upside position. In other words, it is pointing to the market price recovery. The two indicators are telling us that the price of SOL/USD is recovering from the downtrend.

Information from the 4-hour chart
The bullish candles in the trading session show tug-of-war between the demand and supply. This is giving us the impression that the strength of bulls in this market may still not be enough to send the price to the upside. Investors still need to wait for more confirmations before making any move.

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