Is Solana (SOL) Price Ready for a Breakout? Injective (INJ) Indicator Suggests Potential Reversal

Rekt Capital, one of the leading technical crypto analysts, has shared his latest price outlook on Solana and Injective in his recent newsletter.

Crypto technical analyst Rekt Capital shares his latest price outlook on Solana and Injective in his recent newsletter.

Solana’s Critical Resistance Level Under Test

The blue diagonal trendline resistance has been a key barrier for Solana over the past several months. While SOL has repeatedly tested this level with upside wicks that breached the diagonal line, it consistently failed to sustain these gains, leading to Weekly Closes below the resistance.

However, in the recent market update, SOL managed to secure a Weekly Close above the blue diagonal resistance, technically suggesting a potential breakout scenario. But, the subsequent price action saw SOL retrace significantly, dropping below the blue diagonal trendline.

Now, the market faces a crucial question: whether this current retrace is merely a volatile retest of the confluent resistance area marked by the blue diagonal trendline and red box region, or was the previous Weekly Close above this zone a false breakout?

The price action over the weekend will likely provide more clarity. A Weekly Close above the blue diagonal and red area would confirm a volatile retest, while a close at current levels could trigger a pullback to the $159 support level.

At the time of writing, SOL is trading around $166, showing a modest decline of 1.2% for the day.

Also Read: Analyst on Why Kaspa’s (KAS) Price Action Shouldn’t Worry Holders

Injective’s RSI Signals and Range Analysis

Meanwhile, INJ continues to be confined within its established orange-orange range, with recent price action pulling back to the Range Low at $18.02. However, a crucial technical indicator may be suggesting the potential for further downside movement.

Throughout various periods, the Relative Strength Index (RSI) has acted as a reliable gauge for INJ’s local bottoms. Previous instances where the RSI touched the Higher Low level have consistently preceded either local bottoms or an upward price reversals. Currently, the RSI is still significantly far from this Higher Low target.

For the INJ price to maintain its current range, it needs to secure a Weekly Close above the Range Low of $18.02. If INJ manages to sustain stability above this level while the RSI approaches the Higher Low, it might be able to avoid further downward pressure. However, a Weekly Close below the Range Low could transform this level into resistance and potentially trigger additional decline until the RSI Higher Low is reached.

At the time of writing, INJ is trading at approximately $18.51, down 2.8% on the day.

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