• Solana price sees bulls targeting $219.75 and making new all-time highs. 
  • With RSI indicating overbought, it could be time for SOL to take a breather before the next move up.
  • Expect the monthly R1 pivot to offer resistance, then possibly support, before R2 comes into focus at $272.17.

Solana (SOL) price has successfully broken out of the descending top line that was keeping  SOL price trapped below $200. The breakout rally began  at the level of the 50-day Simple Moving Average (SMA), a level which has provided support on several previous occasions. Today, SOL price hit the monthly R1 at $206.73 and is now on its way higher to the next target at $219.75.

Solana price to hit $219.75

Bulls were able to break above the monthly pivot on Wednesday, which sparked an acceleration in the rally before hitting the monthly R1 resistance level at $206.73. 

The Relative Strength Index (RSI) is in  overbought territory indicating SOL may take a short breather before moving higher. Followingthe correction, expect R1 to turn from resistance into support. That support should keep the uptrend in shape and see new buyers joining the rally to move on to the next price target, around $272.17.

SOL/USD daily chart

SOL/USD daily chart

Both R1 and the all time highs will probably provide SOL price with a double band of support between $206 and $219 which will see bulls both defending this area and using it as entry-level each time SOL price dips back to these levels before rallying further towards the monthly R2, near $272.17.

Should Solana price see bulls not holding the support at the R1 resistance level, expect bears to quickly reverse the rally from this week back to the monthly pivot near $155.87. If global market sentiment turns back to risk-off, expect bears to see bulls fleeing the scene and give them room to break below the 55-day SMA towards $120.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Chainlink price could surprise LINK holders, as it prepares for staking on Ethereum

Chainlink price could surprise LINK holders, as it prepares for staking on Ethereum

Chainlink is eyeing gains ahead of its staking launch on Ethereum mainnet in December. Staking is a core initiative of Chainlink Economics 2.0, a new program offering LINK holders the opportunity to earn rewards. 

More Chainlink News

Sam Bankman-Fried says FTX US is fully solvent, withdrawals could open today

Sam Bankman-Fried says FTX US is fully solvent, withdrawals could open today

Sam Bankman-Fried, popularly known as SBF, told New York Times’ Andrew Ross Sorkin that FTX US customers could be made whole soon. SBF claims that these entities: FTX US and FTX US derivatives, could be “up and running soon.”

More Cryptocurrencies News

XRP is highly undervalued and whales are accumulating, here’s what you should do

XRP is highly undervalued and whales are accumulating, here’s what you should do

Ripple (XRP) price shows a lack of volatility as it sits above a crucial support level that could make or break its short-term future. A spike in buying pressure is what the remittance token needs to kick-start its run-up.

More Ripple News

TRON price faces major resistance at these levels, is a sucker's rally underway?

TRON price faces major resistance at these levels, is a sucker's rally underway?

TRON price (TRX) has retaliated considerably against the bearish onslaught in November. Despite the optimistic gesture, TRX price still faces significant barriers of resistance.

More Tron News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP