Solana Price Forecast: On the verge of 18% rally
- Solana price extends gains on Wednesday after rebounding at the one-month rising trendline around $164.50 on Tuesday.
- Investors could accumulate SOL at support levels extending between $160.02 and $144.48.
- A daily candlestick close below $137.58 would invalidate the bullish thesis.
Solana (SOL) price increases for a third consecutive day on Wednesday and looks set for a further 18% rally, technical indicators show, offering sidelined traders a buying opportunity before the token extends gains.
Solana price looks promising
Solana price holds above the $160 level and seems to edge higher, but sidelines bulls could still have a buying opportunity at the following levels:
- The daily support level from the April 23 top at $160.02.
- At the 61.8% Fibonacci retracement level at $144.48.
Assuming the Solana price bounces off at $160.02, it could rally 18% to its previous high of $188.84 on May 21. Supporting the aforementioned bounce are the Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators, which found support at their respective mean values of 50 and 0 and signaling that bullish momentum is in control.
In case of an aggressive bullish outlook, SOL could rally by an additional 7% to $202.45 and retest the daily close of March 31.
SOL/USDT 1-day chart
However, if the SOL daily candlestick closes below the May 13 low at $137.58 and forms a lower low on the daily time frame, it could lead to a change in market structure favoring the bears. This change could invalidate the bullish thesis, leading to a 16% crash to the previous daily support level of $115.89 from April 13.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
