SolanaLong
SOL/USD Working with Clear Pennant Pattern
Following an all-time high of US263.72 in November (up 45%), SOL/USD (Solana versus the US dollar) price action on the daily timeframe is in the process of drawing up a pennant pattern between the record high and a low of US$220.78.
Pennant Pattern and Ichimoku Support Combination
What is interesting here is that the pennant pattern has formed ‘into’ an area of support between the Ichimoku Conversion Line (blue at US$238.96) and Base Line (red at US$208.84). This could see buyers attempt to enter the fight from this area, with a break north of the pennant pattern possibly employed as bullish confirmation.
Should price fail to breakout higher from current levels, investors will likely look towards the Ichimoku Cloud support area. This consists of the Leading Span A (green at US$223.90) and the Leading Span B (orange at US$198.15). You may also note that the Ichimoku Cloud is positioned closely with support at US$188.42 and a trendline resistance-turned-possible support line formed from the high of US$209.27.
Price Direction?
Because of the pennant pattern's convergence, SOL/USD traders will likely gravitate to the support area between the Ichimoku Conversion and Base Lines. As noted, a breakout above the pennant pattern’s upper boundary may see more buyer commitment, leading to price challenging (and possibly breaching) all-time highs.
Pennant Pattern and Ichimoku Support Combination
What is interesting here is that the pennant pattern has formed ‘into’ an area of support between the Ichimoku Conversion Line (blue at US$238.96) and Base Line (red at US$208.84). This could see buyers attempt to enter the fight from this area, with a break north of the pennant pattern possibly employed as bullish confirmation.
Should price fail to breakout higher from current levels, investors will likely look towards the Ichimoku Cloud support area. This consists of the Leading Span A (green at US$223.90) and the Leading Span B (orange at US$198.15). You may also note that the Ichimoku Cloud is positioned closely with support at US$188.42 and a trendline resistance-turned-possible support line formed from the high of US$209.27.
Price Direction?
Because of the pennant pattern's convergence, SOL/USD traders will likely gravitate to the support area between the Ichimoku Conversion and Base Lines. As noted, a breakout above the pennant pattern’s upper boundary may see more buyer commitment, leading to price challenging (and possibly breaching) all-time highs.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.