Solana Price Forecast: SOL big picture to flip bullish soon, all eyes on $26

Solana price trades around $21.2 with a shift in trend favoring bulls.
The outlook for SOL seems burgeoningly bullish on the three-day chart.
A flip of the $25.8 hurdle into a support floor is likely to kickstart a 43% rally to $37.1.
A three-day candlestick close that flips the $17.5 support level will invalidate the bullish thesis.

Solana (SOL) price seems to be undoing the bearish pressure that has kept it subdued all this time. The recent spike in buying pressure has pushed SOL to produce a higher high on the three-day chart, signaling a shift in momentum favoring bulls.

Also read: This altcoin nears the end of its five-month downtrend and could rally 40% soon

Solana price edges closer to a volatile move

Solana (SOL) price trades at $21.2 after producing a decisive three-day candlestick close above the 13-day, 25-day and 30-day Exponential Moving Averages (EMA) in the $20-region. This move has also produced a higher high relative to the September 19 swing high of $20.54.

While the Solana price action is bullish, no doubt, the momentum indicators – Relative Strength Index (RSI) and Awesome Oscillator (AO) are also showing signs of improvement. The RSI, in particular, has flipped above the 50 mean level on the three-day chart, signaling that the strength of bulls is on the rise, The AO, however, is still below the zero mean level, lagging behind RSI. Traders need to keep a close eye on this index as a flip above the zero level could trigger a volatile move in SOL to the upside.

The first target for SOL traders is the $25.8 level, which is roughly 22% away from the current level and is a good trader for short-term investors. But the $25.8 barrier is key from a long-term perspective; a flip of this hurdle into a support floor on the three-day chart could catalyze a 43% rally in Solana price to $37.1. This move would constitute a 76% gain from the current level.

SOL/USDT 3-day chart

While the optimistic outlook for Solana makes logical sense, considering the recent price action and momentum indicators, investors need to be cautious. A sudden spike in selling pressure that pushes SOL to produce a three-day candlestick close below the $17.5 support level will create a lower low and invalidate the bullish thesis.

In such a case, Solana price could crash nearly 15% and revisit the $14.9 foothold.

Share: Cryptos feed

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.