• Solana price is slowly planning a recovery after a bear trap has been formed.
  • $209 will be a key level to watch as SOL must rise above it in order for a 54% rally to be on the radar.
  • The Ethereum-killer will find reliable support at $185 if selling pressure increases.

Solana price has been steadily trending upwards since mid-September, providing a promising bullish outlook. However, the Ethereum killer recently formed a bear trap as it sliced below the governing technical pattern’s lower boundary, confusing forecasts. Once SOL manages to reclaim $209, the altcoin could skyrocket 54%.

Solana price needs to reclaim critical level

Solana price has printed an ascending parallel channel on the daily chart, suggesting an optimistic outlook. On November 26, SOL sliced below the prevailing chart pattern’s downside trend line, indicating that the uptrend is in jeopardy. However, technical indicators suggest that this recent low only formed a bear trap.

While Solana price fell to a swing low at $182, the Relative Strength Index (RSI) failed to reach a new low – indicating a bullish divergence. This trading signal suggests that the bears are losing control over the market, and that the bulls are ready to take over, marking the end of a temporary downtrend.

The prevailing chart pattern suggests that Solana price could tag the upper boundary and 127.2% Fibonacci extension level as its next bullish target at $325, marking a 54% climb.

In order for the bulls to execute a recovery, Solana price must reclaim the the lower boundary of the parallel channel as support at the 78.6% Fibonacci retracement level at $209, coinciding with the 21-day Simple Moving Average (SMA). 

Solana price will battle additional hurdles at the 50-day SMA at $225, corresponding to the resistance line given by the Momentum Reversal Indicator (MRI). The final hurdle appears to be at $259, the altcoin’s all-time high, which sits near the middle boundary of the governing technical pattern before SOL aims for the optimistic target at $325.

SOLUSDT

SOL/USDT daily chart

The MRI flashed a bottom signal on the second November 27 candle, adding credence to the bullish outlook. 

However, if the bears decide to take back control, Solana price will discover an immediate foothold at $185, the November 18 low, corresponding to the MRI’s support line. An additional line of defense will appear at $169, where the 200-day SMA and 61.8% Fibonacci retracement level reside.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Crypto trading volume declines further, signaling waning trader enthusiasm and market momentum

Crypto trading volume declines further, signaling waning trader enthusiasm and market momentum

The total crypto market capitalization lost $1.01 trillion since January, while Santiment data shows that crypto-wide trading volume has dropped since February’s peak. For a healthier and more sustainable recovery, bulls look for rising prices accompanied by increasing volumes; until trading activity picks up, cautious market sentiment is likely to prevail.

More Cryptocurrencies News
BNB price tops $570 as Binance receives $2 billion investment from Dubai

BNB price tops $570 as Binance receives $2 billion investment from Dubai

BNB price rose as high as $574 on Thursday as markets reacted to news that Binance received major investments from an Abu Dhabi based firm. Derivative markets analysis shows how BNB traders are repositioning amid the latest swings in market sentiment. 

More Binance News
PEPE price outperforming DOGE and SHIB as US CPI boosts Crypto markets

PEPE price outperforming DOGE and SHIB as US CPI boosts Crypto markets

PEPE price crossed the $0.00007 for the first time this week as markets reacted to positive macro market signals. Early insights show crypto traders are displaying high risk appetite at the onset of the current market rally. Could this sustain PEPE price uptrend along with the rest of the memecoin market.

More Pepe News
XRP records slight gains as Ripple's battle with SEC nears end

XRP records slight gains as Ripple's battle with SEC nears end

Ripple's XRP recorded a 2% gain on Wednesday following rumors of the company nearing an agreement with the Securities & Exchange Commission (SEC) to end their four-year legal battle.

More Ripple News
Bitcoin: Will Trump's Strategic Bitcoin Reserve and White House Crypto Summit support BTC recovery?

Bitcoin: Will Trump's Strategic Bitcoin Reserve and White House Crypto Summit support BTC recovery?

Bitcoin price extends its decline on Friday, falling over 5% so far this week. BTC uncertainty and volatility spikes liquidated $1.67 billion as the first-ever White House Crypto Summit takes place on Friday.

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP