fxs_header_sponsor_anchor

This Solana price consolidation foreshadows 70% bullish breakout

  • Solana price has formed an inverse head-and-shoulders setup, forecastina a trend reversal.
  • The setup forecasts a 70% upswing to $37.21 which could extend to $38.92 in a highly bullish case.
  • Invalidation of the optimistic outlook will occur on the flip of the $18.66 support level.

Solana price edges closer to a multi-month breakout that could be a sight to behold, especially for SOL holders. A successful breakout could net investors a handsome profit as the alt season narrative picks up steam.

Also read: Solana price to be burned by 10% drop as SOL bulls play with fire

Solana price ready to explode

Solana price reveals an inverse head-and-shoulders formation that has been in formation for nearly a year. This technical formation is a bottom reversal setup and contains three distinctive swing lows. 

The central trough is termed the head and is lower than the other two troughs, named shoulders. Hence the namesake inverse head-and-shoulders. A trendline connecting the peaks of these swing lows shows a strong declining resistance level which is often referred a neckline. 

A decisive close above the neckline confirms a bullish breakout of the inverse head-and-shoulders pattern. This 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.

As of April 8, Solana price consolidation just below the neckline has gotten tighter over hte last three weeks or so. This rangebound movement indicates a period of low volatility, and breakouts are often associated with high volatility. Hence, a three-day candlestick close that breaches the one-year trendline could catalyze a rally for Solana price.

Additionally, sustenance of the bullish momentum after hitting the theoretical target of $37.21 SOL could attempt to sweep the $38.92 level to collect buy-stops, bringing the total gain to roughly 80%.

SOL/USDT 3-day chart

The invalidation of this outlook is clear; a breakdown of the $18.66 support level will skew the odds in the bears’ favor. Such a development could see Solana price slide down to $14.95 barrier.

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.