Solana price eyes strong rebound toward $176 as critical support saves the day

Solana price is preparing to reverse the period of underperformance with a 25% ascent. A key technical indicator suggests that a swing low may have been formed on January 7 and that a rebound may be in the offing. 

Solana price awaits 25% climb

Solana price has formed a descending parallel channel on the 12-hour chart, suggesting an overall bearish outlook. However, the Momentum Reversal Indicator (MRI) has flashed a bottom signal, indicating that a price reversal may be in store.

The first area of resistance for Solana price is at the 23.6% Fibonacci retracement level at $149, followed by $160, where the 21 twelve-hour Simple Moving Average (SMA), 38.2% Fibonacci retracement level and middle boundary of the prevailing chart pattern meet.

If Solana price manages to slice through the aforementioned obstacles, SOL will still need to tackle another hurdle at the 50% retracement level at $168 before reaching higher levels. 

The bullish target sits at the upper boundary of the governing technical pattern at $176, intersecting with the 61.8% Fibonacci retracement level, 50 twelve-hour SMA and the MRI’s resistance line, resulting in a 25% ascent. 

SOL/USDT 12-hour chart

Bigger aspirations may target the 78.6% Fibonacci retracement level, coinciding with the 200 twelve-hour SMA at $188 If the bulls manage to slice above the aforementioned headwinds.

However, if the bulls fail to lift prices higher against the distribution of the sellers, Solana price may slide further to reach the January 8 low at $133, before retesting the crucial support level at the lower boundary of the parallel channel at $129.

Breaking below the aforementioned line of defense may spell further trouble for the bulls.