A countertrend move for Solana price will be surprising

SOL price descends within a parallel channel.
Solana price shows smart money interest on the volume profile.
Invalidation of the downtrend is a breach at $76.

Tony M.FXStreet Contributor

Solana price looks on pace to decline further, but profitable countertrend opportunities could occur.

Solana price is still macro bearish until...

Solana price is still steeply declining as the bears have been unsuccessful in their recovery attempts. Today the SOL price trades at $40, still within a descending parallel channel. The mundane price action presents a double scenario in the short term. If the bulls conquer the next move, a rally towards $54 will occur, resulting in a 36% increase from the current SOL price.

Solana price provides confluence of an imminent rally as the volume profile shows considerable trading interest. It has been mentioned in previous outlooks that the SOL price could fall into Fibonacci targets at $34, $17 and possibly $10, which is why this thesis is still considered bearish.

SOL/USDT 4-Day Chart

Invalidation of the macro bearish thesis is a breach at $76. If the bulls can breach the invalidation level, the bulls could reconquer the entire trend and make new all-time highs towards $250, resulting in a 530% increase from the current Solana price.

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.

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