Solana price seeks support to reactivate the bullish uptrend

Solana (SOL) price has been stuck in a sideways trend after making new all-time highs last week. As price action starts to fade a little bit, buyers are looking for the next entry point to restart the next phase in the uptrend. With the RSI coming out of the overbought area, expect SOL price to first correct another 10% before buy-side volume picks up again.

Solana price momentum builds in favor of a bullish bounce towards new all-time highs

Solana price made new all-time highs on Sunday but instantly got hit by profit-taking. SOL price then looked for support around the monthly R1 resistance level at $239.70. Today  R1 got broken and SOL price traded below it. Although bulls are trying to defend the R1, it looks that this area has lost the interest of new buyers and might see some more profit-taking in the coming hours.

SOL price will first need to see the Relative Strength Index (RSI) dipping further towards 50 after trading in overbought territory. This is an imperative signal for new buyers exploring entry levels for another uptrend in Solana price action. This level could be reached if the SOL price fades another 10% towards $219.75, a fundamental historical level since September 9.

SOL/USD daily chart

Solana price will see bears pushing price further to the downside with bulls seeking support at around $219.75. This level from September 9 has acted as strong resistance in the past and saw a clear break to the upside on November 02. It is yet to show its support, and that test looks to be happening anytime now as bears test the water. 

Expect a test and rejection of further bearish price action in SOL as the $215.92 level holds firm, and with the RSI trading around 50, the longs should see a pick-up in volume from new buyers. Expect this to be the signal for another leg up in Solana price and present new all-time highs in a couple of days. Favorable tailwinds in the markets and global risk-on sentiment should accelerate and extend the move even further towards $300.00.