SOLUSDT → False breakdown of the 200SMA. Bullish direction

May 13, 2023

The SOLUSDT has been in the 26-20 range for more than a month, after breaking resistance. The price makes a false break of the key support and tests the 200 SMA. What's next?



Earlier we saw a broken trend, but at the time of the breakout the market moved smoothly into a correction phase and bitcoin was dragging weak altcoins down behind it.
SOL is feeling more confident than bitcoin at the moment, tentatively, we can say that the bulls (big buyers) are trying to hold the asset of interest.
If the level of 20.34 will be held, then in the medium term it is worth to expect a breakdown of 26.05 and further growth towards 38.39, as this area is the key liquidity zone at the moment.

Strong support: 20.34, the 200 SMA, the descending boundary of the channel
Strong resistance: 50 SMA, 26.05.
I expect a rebound from the level of 20.34 and growth in the medium term, as the coin shows us good bullish potential at the moment.

Regards to R. Linda!

May 14, 2023

Note

False breakdown of support 20.34 is formed. On the local timeframes the pattern "Head and shoulders" is formed, which can form a bullish impulse.

Since the price forms a symmetric triangle, there is a probability of growth of the price to the resistance of the pattern