Solana (SOL) Sees Bullish Shift with Rounding Bottom Pattern Completion

17 April 2024

in Solano

Reading Time: 6 mins read

Solana (SOL) Sees Bullish Shift with Rounding Bottom Pattern Completion

Solana (SOL) has recently completed a notable technical pattern known as a rounding bottom, indicating a potential shift from a bearish to bullish trend. Following a prolonged downtrend from November 2021 to January 2023, SOL experienced a brief period of consolidation before the bulls began to assert control, forming the distinctive “U” shape characteristic of a rounding bottom pattern.

Solana ETF Odds Rise as SEC Delays; ADA & MAGACOIN FINANCE Lead Watchlists – Crypto Economy

13 September 2025

Solana News: Layer Brett Could Bring More Returns For Early Investors Than Pump.Fun Platform Made For Top Traders – Crypto Economy

13 September 2025

The completion of this pattern suggests a change in long-term sentiment, with the price decline losing momentum and gradually transitioning into a recovery phase. If SOL manages to maintain support around the $130.45 level, it could signal a move towards the supply zone ranging from $197.70 to $250.21. A decisive breakout above the midline on the weekly timeframe, approximately at $224.14, would confirm the continuation of the primary bullish trend.

[crypto-donation-box]

SOL/USD 7-day price chart (source: TradingView)

Moreover, indicators such as the Relative Strength Index (RSI) above 50 further bolster the bullish outlook for SOL, indicating potential for upward momentum. Increased volume activity on platforms like Santiment also suggests growing interest and participation in SOL, potentially paving the way for stronger price movements.

Solana’s Market Performance

In recent market turbulence, Solana (SOL) has mirrored broader cryptocurrency trends, experiencing fluctuations in price alongside major players like Bitcoin (BTC). Despite recent declines, SOL continues to hold its position as a top contender in the cryptocurrency market, boasting attributes such as speed and low transaction fees that appeal to developers and projects.

However, SOL’s recent price performance has seen fluctuations, with the token witnessing a decline of approximately 28% over the past 30 days. The past week has been particularly challenging, with SOL experiencing a downturn of over 23% in value. Currently trading at $139.63, SOL remains significantly below its all-time high of $260.06, achieved in November 2021.

SOL/USD 24-hour price chart (source: CoinMarketCap)

Despite these challenges, SOL maintains its position among the top cryptocurrencies by market capitalization, currently ranking fifth according to CoinMarketCap. While trading volume has experienced a slight decrease, SOL’s ongoing presence in the market underscores its resilience amid market fluctuations.

Solana’s Network Upgrade

In efforts to address network congestion and enhance overall efficiency, Solana has introduced a new update, version 1.17.31, to its validator client software. Leveraging stake-weighted quality of service (SWQOS), this update prioritizes transactions from validators with stakes, aiming to improve network performance and reliability.

The implementation of SWQOS is expected to alleviate current congestion issues within the Solana network, potentially leading to improved user experience and increased engagement. While this upgrade may not immediately translate into a price recovery for SOL ahead of the Bitcoin halving event, it reinforces confidence in the network’s stability and efficiency, laying the groundwork for future growth.

The v1.17.31 release is now recommended for general use by MainnetBeta validators. This release contains enhancements which will help alleviate the ongoing congestion on the Solana Network.

— Solana Status (@SolanaStatus) April 15, 2024

Despite the potential short-term effects on SOL’s price, such network upgrades play a crucial role in enhancing Solana’s long-term value and security, positioning it as a competitive player in the cryptocurrency landscape.

Technical Analysis and Outlook for Solana (SOL)

A descending triangle pattern has formed on the price chart of Solana (SOL), indicating a potential bearish continuation. This pattern is characterized by a series of lower highs connected by a downward-sloping trendline, along with a horizontal support line around the $130 level. Analysts suggest that this pattern reflects a scenario where sellers are exerting more pressure than buyers, leading to a downward pressure on the price.

SOL/USD 4-hour price chart (source: TradingView)

Technical indicators such as the Moving Average Convergence Divergence (MACD) and the Klinger Oscillator corroborate the bearish outlook for Solana (SOL). The MACD line is below the signal line and in negative territory, indicating strong bearish momentum. Similarly, the Klinger Oscillator is below the zero line and the signal line, suggesting a downward momentum for the asset. These indicators together reinforce the bearish sentiment reflected in the descending triangle pattern.

On the other hand, the downward-sloping resistance trendline suggests a potential resistance zone between $142 and $145. The breakout direction from this pattern could determine the next significant move, with a downward breach of $130 indicating a bearish continuation and an upward breakout signaling a potential reversal to bullish momentum.