SOL lastly broke out of its descending channel (white) after rising from the long-term $85-support. In the meantime, the bulls managed to discover a shut above the 20 EMA (crimson) and the 50 EMA (Cyan).
A possible shut under the quick trendline resistance would place the alt for fall in direction of the $105-mark. Then, the bulls would probably proceed their rally while the 20 EMA endeavored to cross the 50 EMA. At press time, SOL traded at $114.36, up by 3.7% within the final 24 hours.
SOL Day by day Chart

Supply: TradingView, SOL/USD
The current bearish part noticed a staggering 71% retracement from its ATH as SOL dropped by essential value ranges. Throughout this descent, the 20 EMA served as a robust promoting level that shunned main bullish rallies. After witnessing two bearish flags throughout this part, the consumers lastly began to construct up strain from the $85.
The bulls had been visibly eager on upholding the six-month horizontal help on the $85-mark. Thus, they discovered a detailed above the long-term down-channel. Additional, they triggered a forty five% rally within the final 15 days.
Additionally, as the space between the 20 EMA and 50 EMA (cyan) step by step declines, the bulls hinted at rising their affect within the days to return. From right here on, with the value continuously testing the higher band of the Bollinger Bands (BB) for the final 5 days, SOL may observe a setback in direction of its 20 EMA earlier than the bulls reinforce their intentions.
Rationale

Supply: TradingView, SOL/USD
The RSI depicted a one-sided bull momentum because it approached the overbought mark on its every day chart. A doable reversal from right here wouldn’t be perplexing for the traders.
Furthermore, the OBV was on a slight downtrend within the final two days whereas the value peaked. So, a reversal from its resistance would verify a bearish divergence that would trigger a setback for the consumers within the close to time period.
Conclusion
SOL depicted an overvalued place on its BB and was on the point of an overbought mark on the RSI. Thus, a possible fall again in direction of the $97-$105 zone earlier than the continued uptrend appeared probably in present circumstances. If 20 EMA crosses the 50 EMA, the possibilities of toppling the 200 EMA would brighten up.
In addition to, contemplating the influence on the broader sentiment of Bitcoin’s motion would even be very important in making a worthwhile transfer.