- Solana price forms a classic squeeze against $58.84 top level.
- SOL price will see a bullish breakout that will hit the red descending trend line.
- Depending on the motivation and deflation of tail risks, expect a break above the trend line toward $95.31.
Solana (SOL) price is on the cusp of piercing through the plateau, which has kept price action muted to the downside since last week. Once the bullish breakout is behind us, expect SOL price to test the red descending trend line around $78 and, depending on the buy volume behind it, could pierce through that trend line. That break would be the key trigger for investors to get back in behind the price action and watch it quickly spiral higher toward $95.31 with the 55-day Simple Moving Average (SMA) as a cap.
SOL price set to pop 72% as bullish squeeze gets underway
Solana price is on its way to performing a classic bullish squeeze with higher lows and price action getting squashed against the top line at $58.84. Pressure is building, and bears will soon need to forfeit their positions and inadvertently join the buyers to close their short positions. With that move, demand on the buy-side will quadruple and see a fierce shot higher in the price action.
SOL price could go as far as $78 in that movie, and bulls would hit the red descending trend line. Depending on the risk-on sentiment and if the dollar is retreating, SOL price would have plenty of tailwinds to break out of the downtrend that began in April and see massive inflow from investors awaiting a critical signal that the downtrend has come to an end. That would see a solid rally in Solana price toward $95.31, just below the 55-day SMA.
SOL/USD daily chart
As markets moved a lot yesterday, some assets are now trading at critical levels that could see a rejection. The same goes for both the dollar and Solana price, with that last one pressing on the $58.84 level and possibly seeing a rejection to the downside; Bears would see bulls fading and trigger a drop back toward $40.00. If some new negative headlines push markets back into winter mode, expect to see a nose dive move toward $18.66.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.