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How Solana price will trade back above $130 very soon

  • Solana price has been trading in a distribution zone between $105 and $120 over the past few days.
  • SOL price performed a bullish breakout this morning and sought a support test after the breakout.
  • Expect to see SOL price increase going into the weekend and power through $130.

Solana (SOL) price is on the cusp of breaking back above $130. Bulls and bears have been trading against each other in the distribution phase between $105 and $120 these past few days. With the bullish breakout earlier this morning, bulls have won the battle and have overpowered the bearish sell pressure by blowing up the demand side. Expect to see a rally stretching towards $130.70 enabling bulls to regain control for a further continuation next week.

SOL price gets a push in the back from the DAX storming out of the gates

Solana price got fired up this Friday in early trading with the Dax storming out of the gates and adding another tailwind to cryptocurrencies, setting a positive tone before the weekend. Additionally, bulls and bears were ready after exchanging positions and orders in the distribution zone between $105 and $120. In that distribution phase it is often the case that volume trades are substantial and chunky, and as a breakout unfolds, the other party often gets squeezed out and is forced to take its losses, reverting to the opposite side and, by doing so, inevitably triggering a jump in price action in favour of that opposite side.

SOL price saw a bullish breakout this morning, after bears were forced to revert to the buy-side to cut their losses while trading in the distribution phase. Expect to see a rally further towards $130.70, where a daily close would set the scene for more gains to come in the weekend and next week. Should the Nasdaq be able to eke out weekly gains, that would trigger an even more bullish reaction into the weekend

SOL/USD  4H-chart

SOL/USD  4H-chart

One of the tail risks, next to the first round of French elections this weekend, is that the squeeze on Russia is becoming a bit too big and could push Russia into more unconventional tactics. The call for nuclear weapons becomes more prominent, and it could be that one day the world will wake up with headlines that a critical city in Ukraine has been wiped out by a neutron bomb or another nuclear variant. Expect that crypto to undergo slaughter in such a situation, given the tail risk looming, and for SOL price to see a drop below $100 towards $97.50 around the 55-day Simple Moving Average.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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