SOL Technical Analysis: High Demand Confluence Area Teases Reversal

The SOL coin price approaches the $75 support zone with a 40% downfall in the past week. Will the zone halt the downfall or succumb under selling pressure? Solana is a very efficient open-source project which focuses on the permissionless nature of blockchain technology to provide decentralized financial (DeFi) options. The concept and the initial development started in 2017. SOL was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland. The protocol was designed to make it easier for decentralized application (DApp) development. Its goal is to increase the scaling by introducing a proof-of-history (PoH) consensus. It is paired with the core blockchain’s proof-of-stake (PoS) agreement. Let us move ahead to read about Solana technical analysis. Past Performance of SOL The SOL coin price gives a 40% downfall from the fallout of the 50% Fibonacci retracement level at $145. The fallout of $145 brings the bearish breakout of the 200-day Exponential Moving Average. Currently, the price approaches the 23.60% Fibonacci Retracement level, close to the $75 support zone. SOL/USD Daily Chart SOL Technical Analysis The SOL coin price action forms a broadening falling wedge pattern in the daily chart. The price rests at the support trendline close to the support zone of $75. The confluence of such high-demand areas increases the chances of a bullish reversal. The recent fallout of the 200-day EM...