Sold your SOL? Solana price eyes 35% jump as two technical signals flip bullish
At least two technical indicators show Solana (SOL) could undergo a sharp price recovery in June, even after the SOL/USD pair's 78.5% year-to-date decline.
First, Solana has been painting a "falling wedge" since May, confirmed by its fluctuations inside two descending, converging trendlines. Traditional analysts consider falling wedges as bullish reversal patterns, meaning they resolve after the price breaks above their upper trendlines.
As a rule of technical analysis, a falling wedge's profit target is measured after adding the maximum distance between its upper and lower trendlines to the breakout point. So depending on SOL's breakout level, its price would rise by roughly $20, as shown below.
That puts the SOL's price target at $58 if measured from the current price, or about 35% higher. But if the price retreats after testing the wedge's upper trendline and continues to fluctuate inside its range, SOL's profit target would keep getting lower.
The Solana token can rise at least to $44 after breaking out of its wedge pattern.
More upside cues for Solana come from a growing separation between its price and momentum trends.
In detail, SOL's recent downside moves accompany an upside retracement in the readings of its daily relative price index (RSI), a momentum oscillator that detects an asset's overbought (>70) and oversold (<30) conditions.
This situation, otherwise known as "bullish divergence," shows that bears are losing control and that bulls would capture the market again.
Financial market veteran Tom Bulkowski believes falling wedges are poor bullish indicators, however, with a higher breakeven failure rate of 26%. Meanwhile, there is only a 64% chance that a falling wedge would meet its profit target, which leaves
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