- Solana price reveals a struggle to overcome a crucial hurdle at $101.70.
- Investors can expect SOL to rally 35% and retest the $135 hurdle.
- A daily candlestick close below $80.76 will invalidate the bullish thesis.
Solana price foreshadows an uptrend as it consolidates below a crucial support level. This move could also propel SOL to highs last seen two weeks ago.
Solana price awaits a breakout
Solana price rallied 51% on January 24 and set a range extending from $80.76 to $121.52. Since then SOL has been stuck trading in between the two boundaries. Typically, rangebound moves often sweep one side before turning and making a run to the other side.
SOL price action followed the same pattern after it deviated below the range low on February 20 before beginning an 83% upswing. Although this move set a swing high at $143.56, which was substantially higher than the range high, it failed to sustain.
The bearish market structure combined with investor profit-taking led to a 32% downswing that not only broke back below the range high at $122.64 but also slid under the midpoint at $101.70. Since April 11, Solana price has been stuck trading under this barrier, yet it is consolidating with hopes of moving higher.
A decisive daily candlestick close above $101.70 will indicate a resurgence of buyers and propel SOL by 20% to retest the range high at $121.52. If market makers want additional secondary confirmation they can wait until after the $104.92 barrier has been flipped into a support level before going long.
In a highly bullish case, SOL could extend beyond the range high and revisit the $136.92 level, bringing the sum total run-up to 35%.
SOL/USDT 1-day chart
While things are looking balanced for SOL, a failure to move above $105.51 will expose bullish momentum as inadequate. In such a case, Solana price could slide lower and revisit the range low at 80.76.
A daily candlestick close below $80.76 will invalidate the bullish thesis and open SOL up for further crashes.
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.