Solana price catches sleeping bulls off guard, is it too late to join the uptrend?
- Solana price has rallied and recovered 60% of losses since the June 14 sell-off.
- SOL price Relative Stregnth Index reconquers bullish support levels.
- Invalidation of the uptrend is a breach below the swing low at $25.86.
Solana price points to a countertrend rally underway. The invalidaiton point is vital for the bullish thesis.
Solana price could get Volatile
Solana price could take sleeping bulls by surprise as the first signs of retaliation might turn into an all-out bullish frenzy if the bears do not act soon. Solana's price has been increasing since the unexpected June sell-off attributed to liquidity pool losses and network issues. Since the plummet, the bulls have been casually trotting higher until this weekend when the bulls printed a bullish engulfing candle into a high at $42.92 on the 2-day chart.
Solana price currently trades at $40.60 as profit-taking has started to occur. The Relative Strength Index shows subtle bullish divergence and has pierced the buyers' support level at 40. This critical evidence may throw the bears off their high horse, as attempting to short the newly breached resistant zone is professionally unwise. Targets for a $10 Solana price anticipated from long-term forecasts may have to wait as the bulls could continue rallying higher towards $50 and $55 if market conditions persist.
SOL/USDT 2-Day Chart
Invalidation for traders looking to join the uptrend should be a breach of the $25.86 low established on June 14, 2022. If the bears can reach his level, they may be able to reconquer the trend, pushing the Solana price towards $18, resulting in a 55% decrease from the current Solana price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
