Solana (SOL) has persistently broken out of descending channels on the daily chart, and the token's next move is set up to be significant
Solana’s technical indicators, a positive MACD reading and a breakout from a descending channel, paint a compelling picture of a market ready to rally.SOL price has increased by 6% over the last 7 days but is down 17% since the start of the month.price action over the weekend and this week has been characterized by a thwarted uptrend. TradingView data shows SOL/USDT’s 20-, 50-, and 100-day exponential moving averages have come into tight convergence.
The Average Directional Index , used to quantify the strength of a trend in a market, has dropped to low levels on the SOL daily chart implying that the market no longer has a strong directional bias. A low ADX typically correlates with reduced market volatility and, in Solana’s case, may be an indication that the uptrend has waned and the market is transitioning from a trending phase to consolidation or range-bound activity.TradingView data showed that the ADX for SOL/USDT has consistently dropped from 26 on 6th August to 19 at the time of writing.
This reading is strikingly below the 20-mark threshold. It suggests Solana may be limited to less dramatic price movements in the near term.In a low ADX environment, range-bound or mean-reversion strategies become more relevant. On the daily chart, SOL/USDT has printed successive positive Moving Average Convergence Divergence histograms for the past five days.
This decline in daily transaction fees suggests reduced activity on the network resulting from fizzling enthusiasm around Solana-based meme coins like Dogwifhat, Popcat and Bonk, whoseSam is a blockchain research analyst and crypto data journalist with over four years of experience delivering technical content about alternative finance instruments.
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