|

Exploring the optimistic side of Solana price as bearish signs wane

  • Solana price is trading between two crucial levels, $37.37 and $41.25, signaling a lack of directional bias.
  • SOL could see a bullish outlook develop over the week as it is stabilizing around the $37.37 support level after a constant downtrend.
  • A four-hour candlestick close below $37.37 will invalidate the bullish thesis.

Solana price recovery has been less than successful; despite multiple attempts from bulls, SOL has formed lower lows and lower highs, indicating a persistent downtrend. Now, the so-called Ethereum-killer is consolidating between two barriers, attempting to break out. 

Solana price remains clueless

Solana price moved from consolidating between the $41.25 support level and the $55.97 resistance barrier for roughly three weeks to being stuck between the $41.25 to $37.37. While this move is clearly bearish, the lows seem to be stabilizing around the $37.37 foothold.

Investors need to be careful as a move above the $41.25 level will breathe hope into the holders’ bags. However, the possibility of an uptrend will arrive after Solana price produces a higher high above $45. 

Doing this will allow sidelined buyers to step in, triggering a minor uptrend to $48.04. This move will represent a 22% gain but in a highly optimistic case, SOL might retest the $55.97, bringing the total gain to 40%.

SOL/USDT 4-hour chart

SOL/USDT 4-hour chart

While things are looking sketchy for Solana price, investors need to note that it has been on a downtrend since May 16. After the recovery from the May 12 crash formed a swing high at $59.31, it has been producing lower lows.  Now  that SOL is stabilizing around $37.37, investors can expect a turnaround for the altcoin.

However, if sellers take control again and flip the $37.37 support level into a resistance barrier on the  four-hour chart, it will invalidate the bullish thesis for SOL. This development could see Solana price crash to $31.76 where buyers could attempt a comeback.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Hyperliquid price forecast: Bullish interest builds amid user recovery

Hyperliquid (HYPE) trades at $25 at press time on Monday, holding the 3% gains from the previous day. The perpetual exchange sees a recovery in active users, while weekly fees collected decline to the lowest level so far this month.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple eye breakout for fresh recovery

Bitcoin, Ethereum, and Ripple are approaching key technical levels on Monday as the broader crypto market stabilizes. Market participants are closely watching whether BTC, ETH, and XRP can sustain breakouts and achieve decisive daily closes above nearby resistance levels.

Top Crypto Gainers: Audiera, Midnight, MemeCore sustain weekend gains

Audiera (BEAT), Midnight (NIGHT), and MemeCore (M) recorded double-digit gains on Sunday and remain top performers over the last 24 hours. Audiera extends the rally while Midnight takes a breather, and MemeCore struggles at a crucial moving average. 

Cardano Price Forecast: ADA suffers from $900 million loss realization as prices bounce near $0.34

Loss realization among Cardano (ADA) holders increased sharply in December, marking one of its heaviest capitulation months since 2023. Since the beginning of the month, investors have realized over $900 million in losses as of Friday.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.