SOL Crypto News: Rising Wedge Anticipates Price Trend Reversal

The combined market cap of cryptocurrencies is also rising by a similar percentage although performance across the board is mixed with Bitcoin (BTC) shedding 0.4% while XRP (XRP) has gained 3.9% in the past 24 hours.

Donald Trump’s crypto reserve tweet boosted the price of SOL on Sunday to $180. However, the market sold off the entire rally just 24 hours later. Since then, the price has been rising steadily in the past three days.

Solana is the second-worst performing asset of the top 5 with yearly losses of 21.5%, only surpassed by Ethereum (ETH), whose annual retreat nears 32%.

The token hit all-time highs in late January amid the launch of Official Trump (TRUMP) and Melania Meme Coin (MELANIA). These two assets raised the network’s transaction volumes but, as their value plummeted, so did the price of SOL.

However, its ecosystem is still growing rapidly as decentralized applications (dApps) like Jito, Jupiter, Raydium, and Pump.fun are already climbing to top spots in the DeFi space in total value locked (TVL) terms.

SOL Should Keep Rallying if $130 Support Holds

Solana’s daily chart shows strong support at the $130 level in the past few days and even more so after Monday’s retreat. However, the price is now hitting a critical area of resistance at $155 that will help traders determine where SOL will be heading in the next few days.

Momentum indicators have jumped to positive territory. The Relative Strength Index (RSI) crossed above the signal line in late February and remains at a fair distance from the signal line.

Meanwhile, the MACD’s histogram shows steadily growing positive momentum. All of these indicators favor a bullish outlook for SOL in the next few weeks as long as the $134 level holds.

Confirmed Bearish Outlook for SOL in the Hourly Chart

SOL’s hourly chart shows that the token could experience a pullback as a bearish rising wedge has been forming since Tuesday. This setup typically indicates that price volatility has subsided and the magnitude of the rallies has been reduced.

A break below the $148 level would confirm the pattern. Momentum indicators are already favoring a bearish outlook in the short term, as the Relative Strength Index (RSI) moved below the signal line.

Scalpers stand to gain if this bearish setup unfolds as expected. By placing a stop price right above the latest higher high and a first target at $140, the risk-reward ratio for this trade stands at 1.42.

This short-term move would not invalidate Solana’s bullish outlook for the next few days unless the drop accelerates below $140. If that happens, the odds would favor a retest of the $130 level in the near term.

Tomorrow will be a huge day for cryptocurrencies as President Trump will be hosting a widely awaited crypto summit. Confirmed attendees to the meeting include Michael Saylor (MicroStrategy), Vlad Tenev (Robinhood), Brad Garlinghouse (Ripple), and Sergey Nazarov (Chainlink).

Moreover, employment data will be published early in the day. The ADP Employment Change survey covering February showed that only 77,000 new jobs were created during the month. This figure came in way below analysts’ forecast of 140,000 for the period.

If the official data confirms this number, this could be bullish for cryptocurrencies as it could prompt the Fed to revisit its stance on monetary policy as the economy is starting to show signs of weaker growth.