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Solana bulls return to the market wanting to push SOL price to new all-time highs

  • 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

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.

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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