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Solana price could nearly double once SOL bulls can shatter this barrier

  • Solana price is hovering inside the $188.69 to $200.13 supply zone.
  • A decisive close above $216 will trigger a bull rally to $400.
  • If SOL produces a daily close below $188.69, it will signal the start of a 12% correction.

Solana price rose from October 20 to October 25, setting up two new higher highs. The buying pressure failed to sustain SOL, however, leading to a correction and a lower low. While the altcoin is trying to recover, a failure to do so could result in a steep correction.

Solana price stuck between a rock and a hard place

Solana price rose 41%, starting October 25, and set up two higher highs and an all-time high at $218.93. However, the buying pressure failed to continue, leading to a 19% decline, creating a lower low at $176.94. While Solana price has recovered roughly 10% since this point, it is still traversing the supply zone ranging from $188.69 to $200.13.

As long as SOL stays inside this supply zone, it will have no directional bias, indicating that it could head either way.

However, a decisive close above $200.13 will indicate that the buyers are making a comeback.

In this scenario, Solana price will head towards the range high at $220.21, a decisive daily candlestick close above which, will confirm the start of a new uptrend.

Under this circumstance, SOL has the chance to tag the 161.8% trend-based Fibonacci extension level at $384.08. This ascent would constitute a 100% upswing.

SOL/USDT 12-hour chart

SOL/USDT 12-hour chart

While the bullish outlook for Solana price is based on the assumption that it produces a daily candlestick close above $200.13, things will turn sour if it fails to do so.

On the flip side, if Solana price produces a close below $188.69, it will indicate that the buyers are weak and the bears are taking over.

In such a case, Solana price will drop at least 9% to retest the 5% Fibonacci retracement level at 170.01. If the selling pressure continues to pour in, Solana price is likely to revisit the $155.78 support floor. This downswing would constitute roughly a 17% downswing from $188.69, where the buyers might decide to restart the uptrend.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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