- Solana price sees a bullish reversal over the weekend after a risk-off Friday.
- SOL price sees bulls recovering ground against bears and reclaiming the 55-day SMA.
- The altcoin only needs to break one hurdle that is preventing new all-time highs.
On Friday, Solana (SOL) price saw a 16% swing to the downside as markets got rattled by concerns over a new Covid variant. Investors, however, used the weekend to reassess the situation and quickly bought into SOL price action on Monday as bulls pushed price up to close above the monthly pivot at $185. Intraday, the uptick has caused a recapture of the 55-day Simple Moving Average (SMA) at $200, which is acting as a launch pad to new all-time highs at $268.
Solana price could hold 30% in renewed uptrend
Solana price was under siege Friday with global markets on the back foot due to worries about the new Covid variant. But investors were quick to brush those concerns aside and began buying eagerly into the dip during the weekend. The Relative Strength Index (RSI) is back up to pre-Friday levels and is seeing buy-side demand at healthy and more significant volumes.
SOL price reclaimed the 55-day SMA at $200 and is using it as a launch platform to attack the $219.75 level. This historical pivot shows excellent signs of both support and resistance in the past, making it a force to be reckoned with. Once SOL bulls can break above, expect a massive influx of buyers who will want to jump on the ‘bandwagon’ as prices rally to new-all-time highs, now looking inevitable at $267.52.
SOL/USD daily chart
With market sentiment shifting back to risk-on, this will add to the tailwinds that could lift SOL price back up towards those new highs by the end of this week, Bullish momentum could propel traders into a buying frenzy. In the event of buyers not being able to break above $219.75, they might get squeezed out of their positions with bears pushing price back towards the monthly pivot at $185.12. That would trigger a massive sell-off with SOL price nosediving towards $147, where the monthly S1 support level is situated and the orange ascending trend line, which is likely to act as a buffer.
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.
Recommended Content
Editors’ Picks
Dogecoin price bullish outlook intensifies as DOGE turns 10
Dogecoin price has sustained the bullish outlook since October 18, when the broader market turned green, leading meme coins in an uptrend, which is no mean feat. The 65% climb has ushered the dog-themed cryptocurrency to its tenth birthday since its official launch on December 6, 2013.
Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally
The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.
Arbitrum price veers as hard fork proposal receives 99.84% votes in favor
Arbitrum's price surpassed expectations as the altcoin managed to restrict the fluctuation over the past 24 hours. This is because ARB was forecasted to rally following the result of the proposal to essentially hard-fork the chain.
Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization
Bitcoin (BTC) price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused.
Analyzing potential $30k corrections ahead of BTC ETF approval
Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.