Solana bull flag breakout suggests SOL will hit $300
- Solana price gained 6% on Saturday and pushed Solana above the bull flag channel.
- A return above the Tenkan-Sen must hold as support if bulls want to push Solana higher.
- Oscillators support a push towards $300.
Solana price action experienced an overwhelmingly bullish close on Saturday with a massive 6% drive. Sellers on Sunday attempted to return Solana lower but failed. Bulls were ultimately able to hold Solana above the Tenkan-Sen, creating near-term support. A bullish entry is now in sight to confirm a rise towards $300.
Solana price must close above this recent channel high to hit $300
Solana price is very close to generating a greater than 22% gain. For that rise to occur, Solana must close at or slightly above the prior swing high of $246.50. If that occurs, then theoretical long entry at $246.50 could be triggered.
The stop loss is positioned between the daily Tenkan-Sen and Kijun-Sen at $231.50. The projected profit target is the $300 level. $300 is the 100% Fibonacci expansion from the swing low of $176.95 on October 27th to the swing high of $259.90 on November 6th.
The oscillators currently favor Solana price extending higher – pending a close to the defined entry-level. The Relative Strength Index and Composite Index both read neutral, with the Composite Index nearing a bullish crossover of its moving averages. Additionally, the Optex Bands have flattened out near their extreme lows and have begun to turn higher.
SOL/USDT Daily Ichimoku Chart
Downside risks, however, remain. A daily close that would return Solana price below the Tenkan-Sen would trigger strong selling and signal that bulls are unwilling or unable to participate at the present value area. Therefore, buyers should be cautious of any daily close below the $237.75 value area.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
