Solana price hits curb as rally stalls before going into 2022
|- Solana price saw bulls being rejected from more upside at $207.
- SOL price tanked throughout the week, looking for support.
- The best outcome would be for SOL to test solid support at $146, which would set Solana ready for a bull run in 2022.
Solana (SOL) hit a curb on its way to $221 by getting rejected at the 55-day Simple Moving Average (SMA) at $207. Since then, SOL price action has faded to the downside in looking for support and investors to offer an opportunity to get long for a solid trend. As Solana looks heavy, expect some further downturn with investors awaiting to pick up at $146 and gearing up for a massive blow-out towards new all-time highs in early 2022.
SOL price needs to give a little to gain a lot
Solana price got capped by the 55-day SMA this week around $207. Target was set for $221 and new all-time highs after that, but the rally looks to be stalled for now. As SOL price started to fade since then, it looks like investors are a bit puzzled on where to get in precisely as the current levels around $160-$180 are not offering any solid entry levels to get in and manage the trade with a sound stop loss and good risk-return ratio. The best would be for Solana price action to tank a little further and get firm support at $146.
SOL price already bounced off that $146 level three weeks ago and acted as an entry and launching platform for the rally that followed thereafter, reclaiming the $200 level. With the upswing and the start of the new year, investors would be more than happy to join the entry and see a more solid and well-equipped bull run emerging towards $221 at the least. This means that Solana needs to give way 16% of value to gain at least 51% towards $221, or even 83% if SOL makes new all-time highs.
SOL/USD daily chart
The start of 2022 could well be a more difficult one as the pandemic is not over yet, and a few geopolitical elements could take a wrong turn of events at the beginning of the year. That would see more downside pressure on cryptocurrencies overall as investors would want to park their money instead in safe havens, away from risk assets. In that case, expect SOL price to tank even further towards $125, where the 200-day SMA will be ready to catch and support any falling price action in sight as the 200-day SMA has never been firmly broken to the downside in the existence of Solana.
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