fxs_header_sponsor_anchor

Solana price forms bear trap before SOL ascends toward $325

  • Solana price is slowly planning a recovery after a bear trap has been formed.
  • $209 will be a key level to watch as SOL must rise above it in order for a 54% rally to be on the radar.
  • The Ethereum-killer will find reliable support at $185 if selling pressure increases.

Solana price has been steadily trending upwards since mid-September, providing a promising bullish outlook. However, the Ethereum killer recently formed a bear trap as it sliced below the governing technical pattern’s lower boundary, confusing forecasts. Once SOL manages to reclaim $209, the altcoin could skyrocket 54%.

Solana price needs to reclaim critical level

Solana price has printed an ascending parallel channel on the daily chart, suggesting an optimistic outlook. On November 26, SOL sliced below the prevailing chart pattern’s downside trend line, indicating that the uptrend is in jeopardy. However, technical indicators suggest that this recent low only formed a bear trap.

While Solana price fell to a swing low at $182, the Relative Strength Index (RSI) failed to reach a new low – indicating a bullish divergence. This trading signal suggests that the bears are losing control over the market, and that the bulls are ready to take over, marking the end of a temporary downtrend.

The prevailing chart pattern suggests that Solana price could tag the upper boundary and 127.2% Fibonacci extension level as its next bullish target at $325, marking a 54% climb.

In order for the bulls to execute a recovery, Solana price must reclaim the the lower boundary of the parallel channel as support at the 78.6% Fibonacci retracement level at $209, coinciding with the 21-day Simple Moving Average (SMA). 

Solana price will battle additional hurdles at the 50-day SMA at $225, corresponding to the resistance line given by the Momentum Reversal Indicator (MRI). The final hurdle appears to be at $259, the altcoin’s all-time high, which sits near the middle boundary of the governing technical pattern before SOL aims for the optimistic target at $325.

SOL/USDT daily chart

The MRI flashed a bottom signal on the second November 27 candle, adding credence to the bullish outlook. 

However, if the bears decide to take back control, Solana price will discover an immediate foothold at $185, the November 18 low, corresponding to the MRI’s support line. An additional line of defense will appear at $169, where the 200-day SMA and 61.8% Fibonacci retracement level reside.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.