- 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
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.
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
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle (PENDLE) price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Ethereum shows signs of a potential rally as suspected Justin Sun wallet buys heavily
Ethereum's (ETH) recent price movement hints at a potential rally despite ETH ETPs recording outflows. The recent price improvement follows the fourth Bitcoin halving and a suspected Justin Sun wallet purchasing large numbers of ETH.
Floki poised for growth after listing on Revolut
Floki's (FLOKI) team announced in an X post on Monday that the meme coin would be listed on the popular neobank and Fintech platform Revolut. Floki could rise further following key partnerships to boost retail usage.
Jupiter DEX second Launchpad vote concludes, JUP price rises 5%
Jupiter, a Solana-based decentralized exchange (DEX) has completed the second launchpad (LFG) vote to identify the two projects that will debut on its platform. On March 30, the aggregator network had unveiled its Core Working Group (CWG) budget proposal voting.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?