Solana price moves higher, but traders should be cautious for these reasons
- Solana price has rallied 25% since the September 7 liquidation occurred.
- SOL price volume is still relatively low compared to the previous uptrend during the summer.
- A breach above $48.42 could be the catalyst to a much larger bull run targeting $90.
Solana price shows optimistic signals amidst the most recent downturn. Still, there are a few more hurdles to accomplish before confidently calling for the next bull run.
Solana price is almost there
Solana price shows applaudable retaliation after declining 40% since the final days of August. The SOL price has recovered 25% of its lost market value since September 7. The bulls have printed consecutive bullish engulfing candles. If the bullish retaliation continues, a much larger uptrend could unfold.
Solana price currently auctions at $37.32. A Fibonacci Retracement tool surrounding the summer high at $48.42 and the most recent swing low at $29.91 suggests the bulls have conquered 50% of the downtrend. Strong resistance levels are expected to surface near the current price and the 61.8% Fib level at $40.42. Thus calling an end to the downtrend may be too early and ambitious at the current time. The Volume Profile confounds the call for caution as the uptrend shows less volume then the previous summertime rally.
SOL USDT
The safest confirmation of an invalidation of the bearish thesis is a breach above the summertime high at $48.42. If the bulls surpass this level, a larger rally could begin targeting the 261.8% Fib level at $90. Such a move would result in a 180% increase from the current Solana price.
In the following video, our analysts deep dive into the price action of Solana, analyzing key levels of interest in the market - FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
