- Solana price gains as much as 35% in a week, creating new two-week highs.
- Solana breaks above both the Tenkan-Sen and Kijun-Sen, signaling strength and a desire for a resumption of its initial bullish expansion phase.
- Final bearish resistance zones in the oscillators remain and must be invalidated to confirm any new bull market.
Solana price has regained the majority of its losses from its all-time high and shows evidence of a continuation move higher. Thus, nearly all conditions necessary to fulfill an Ideal Bullish Ichimoku Breakout are complete, but some hints of near-term weakness remain.
Solana price must close above $188 to resume the move towards new all-time highs
Solana price has a limited amount of time to confirm that the present rise is an honest move. First, the Chikou Span must move and close above the candlesticks to confirm a new bullish expansion phase. That means Solana would need to close at or above $188. That threshold decreases over the next eight consecutive days.
However, the oscillators point to some warning signs that could terminate any near-term bullish price action. The Relative Strength Index is in bear market conditions and Solana has faced resistance against the final overbought condition at 65. Likewise, the Composite Index has hidden bearish divergence with a series of lower highs on the Solana price chart but higher highs on the Composite Index. Finally, the Optex Bands continue to trend higher and are approaching the extreme overbought levels.
SOL/USDT Daily Ichimoku Chart
For bulls to negate any current bearish divergence, they will need to push Solana price higher and to a price level that will push the Chikou Span above the candlesticks.
Like this article? Help us with some feedback by answering this survey:
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.