Will the US CPI data release bar Solana's price from marking a 32% rally?
|- Solana price trading at $21.86 could be seen hovering above the critical support level at $20.58.
- Falling through the critical support level will bring SOL to monthly lows at $17.61, losing, which would lead to a 31% crash.
- Although if buyers jump in and boost the price, a daily candlestick close above $28.55 would invalidate the bullish thesis.
Solana price reacted positively despite the United States Consumer Price Index coming in above expectations at 6.4% year on year. Following the broader market bullish reaction, Bitcoin price also climbed to $22,300 at the time of writing.
However, the next possible move from the altcoin may not extend Tuesday's rise.
Solana price in bears' clutch
Solana price, trading at $21.86, shot up by 4.75% at the time of writing, hovering near the critical support level at $20.58. The altcoin has been slipping since the end of January after marking a 170% rise over the month. SOL further declined towards the critical support on February 9 after registering an 11.84% fall.
Going forward, Solana price is expected to invalidate the critical support level and fall to monthly lows of $17.61. Price indicators point in the same direction, with the Relative Strength Index (RSI) slipping below the neutral line of 50.0 in the bearish zone.
If the RSI remains present in this zone for an extended period of time, SOL could decline below $17.61. The Awesome Oscillator also reset the bullish momentum this week and initiated a bearish momentum with the indicator moving below the zero line.
Solana Awesome Oscillator and RSI
Thus if Solana price falls below the monthly lows, it would end up crashing by nearly 31% to tag $14.63.
SOL/USD 1-day chart
Although the presence of the indicator below the zero line also hints towards an incoming bullish momentum.
If this scenario plays out and bulls take charge of the price momentum, SOL could end up preventing a decline and breach the immediate resistance at $22.86.
Flipping it into support would enable the altcoin to bounce toward the critical resistance at $28.55. A daily candlestick close above this level would invalidate the bearish thesis, resulting in a 32% rally for Solana price.
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