- Solana price looks optimistic despite the recent correction.
- SOL choppy session continues as a triangle pattern remains intact.
- Only by overcoming the $234 level can prices rise towards $260.
Solana price has been consolidating in a narrow range, forming a bullish continuation pattern on its 4-hour chart. A spike in demand could push SOL higher as it has already completed its correction.
Solana price attempts to rebound strongly
Solana price looks bullish in the long term. Still, there's been a slight downward correction in its price lately. SOL’s short-term technical outlook remains neutral as it's held in a choppy trading range between $234 and $210.
The fifth-largest cryptocurrency by market cap has formed a symmetrical triangle on the 4-hour chart. This type of technical pattern tends to break out in either direction, but for Solana other indicators support the bullish outlook.
For instance, the 50-day exponential moving average is acting as stable support at $200, and closing candles above this EMA is indicative of an uptrend. The upward trendline from Oct. 12 to Nov. 18 is still intact, serving as an additional layer of support. Meanwhile, the RSI crossed above 50, which is another positive sign.
A spike in buying pressure around the current price levels could validate the bullish thesis and create additional room for an upswing to $234 or $262.
Solana (SOL) daily timeframe
On the other hand, Solana has closed a bearish engulfing candle at $234 as the downward trendline represents a substantial hurdle ahead. This type of candlestick pattern is usually succeeded by a downswing. For this reason, traders must pay close attention to the $211 support level as any signs of weakness can result in a correction to $187 or $167.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.