Solana price provides the best buying opportunity before SOL explodes to $40
|- Solana price provides an opportunity to accumulate after breaking out of a massive multi-month inverse head-and-shoulders setup.
- This technical formation forecasts a 70% ascent from the point of breakout.
- A three-day candlestick close below $18.68 will invalidate the bullish thesis for SOL.
Solana price is ready for bullish weeks, but Bitcoin’s recent slack has affected the breakout move. Depending on how Bitcoin price reacts next week, things could improve drastically for SOL holders.
Read more: Solana price breaches multi-month bullish pattern, forecasts $40 SOL
Solana price awaits a signal to restart its ascent
Solana price set up an inverse head-and-shoulders setup between May 15, 2022, and April 11, 2023. This bottom reversal pattern contains three distinctive swing lows. The central valley or trough is named the head, and the troughs on either side of the head are referred to as shoulders. Hence the namesake inverse head-and-shoulders.
Additionally, connecting the peaks of these swing lows shows a declining resistance known as a neckline and serves as a confirmation level for a breakout from this pattern.
Between April 10 and 13, Solana price witnessed a massive spike in buying pressure that resulted in a 22% ascent that breached this setup, providing a confirmation of a breakout. The inverse head-and-shoulder technical formation forecasts a 71.09% upswing to $37.21, obtained by adding the distance between the right shoulder’s peak and the head’s lowest point.
Additionally, due to the ongoing circumstances, SOL has retraced 18% from the local top, providing sidelined buyers an opportunity to accumulate before this uptrend kick-starts.
SOL/USDT 3-day chart
While the outlook for Solana price is extremely bullish, investors need to be careful since Bitcoin price is freefalling. If the BTC selling pressure does not stop, it could be jeopardous for altcoins. In such a case, a three-day candlestick close below $18.68 will invalidate the bullish thesis for SOL.
If the selling pressure on altcoins fails to cease, Solana price could slide 20% to tag the next support level at $14.95.
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.