Solana still under bears’ control, but not for long as buy opportunity is nearby
|- Solana price could still correct by a maximum of 10%.
- SOL bulls are waiting for the orange ascending trend line test before going long.
- In the meantime, global market sentiment is preparing for a Christmas rally including for cryptocurrencies, with SOL targeting $220.
Solana (SOL) price is still under the control of the bears, but a change of sentiment is just around the corner as support is just a small 10% lower near $152. Bulls are awaiting a third test of the orange ascending trend line for a rebound. Expect bears to keep control of price action a little longer, but a bullish reversal could come in the next hours and days, followed by a rise up towards $220, a gain of 45%.
Solana set for bullish reversal of the trend, holding 45% gains
Since the beginning of December, Solana price has been in a downtrend due to headwinds flaring up about a new Covid variant and more hawkish tones from major central banks. As markets brush off that narrative, a shift in sentiment looks to be starting this Monday as equities get firmly back in the green, and some more risk-on sentiment is on the horizon. This will spill over into cryptocurrencies and likely push price-action to the upside, breaking the downtrend from the past fourteen days.
SOL bulls will wait for an entry at around $152, bouncing off the orange ascending trend line which has been awaiting a third test for a long time. As bulls eagerly enter, expect the price to ramp up quickly and break the S1 support level at $171. The trend will then likely continue throughout the week, with sentiment setting the tone, and SOL price potentially hitting $220 by the end of this week, booking a 45% profit.
SOL/USD daily chart
With the end of 2021 approaching, more and more participants will start to close off their positions, and liquidity will start to die down towards the end of next week. This could provide some choppy price action and possible violent corrections on negative news for risky assets. In the event of the orange ascending trend line breaking to the downside, price will drop like a falling knife towards $130 in the first phase, and next down to $100.
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.