Solana price rally continues with another 10% gain on the cards
|- Solana price performs a textbook long-entry for bulls on Sunday.
- SOL price opens higher during ASIA PAC, set to rally towards $150.
- Expect to see more bulls joining the rally in SOL price as the trade gets supported.
Solana (SOL) price performed a textbook bullish trade setup on Sunday, with price action bouncing off a significant historic pivot level and transforming it into support. Thanks to that confirmation, the rally looks far from over, with $150 set as the target with the 200-day Simple Moving Average (SMA) as the cap to the upside. With the incoming support from Sunday, expect bulls to be convinced that a breakthrough above the 200-day SMA could well be on the cards.
Solana price signals a continuous rally towards at least $150
Solana price pulled a textbook trading setup over the weekend with SOL price piercing through $130.70 on Friday, and consolidating above it on Saturday. On Sunday, it tested the level for support with a subsequent bullish candle resulting into Sunday’s close. As a result of this action, Solana price delivered a bullish calling card to the markets, leading investors to overlook the Relative Strength Index (RSI) trading in overbought. Expect to see the rally continue in the current environment as bulls will have set their sights on $150.
SOL price is thus in for at least another 10% gain with only the monthly R1 at $142.67 as a dealbreaker. As bulls attempted to push the price above there on Saturday but failed, repeating a similar trade setup will be vital before touching $150. Expect this to see SOL price pop above $142.67, close above, look for a test of support in the coming days before bouncing off, and swing back south to the 200-day SMA for a test before trying to print new highs by stretching to $160.
SOL/USD daily chart
As already mentioned above, investors are ignoring the alarm signal given by the RSI trading severely in overbought. Should sentiment snap instantly, expect massive sell orders to swamp the market and push price aggressively against $130.70. With pressure mounting and the RSI in overbought, bulls will want to get out and quickly book profits, only adding more pressure to the downside, and possibly triggering a nosedive move back towards $120. Around there SOL price will get slammed against the green ascending trendline and even a possible false break with new investors picking up the pieces for a return later this week towards a rally.
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.