Solana Price Forecast: SOL big picture to flip bullish soon, all eyes on $26

Solana (SOL) price seems to be undoing the bearish pressure that has kept it subdued all this time. The recent spike in buying pressure has pushed SOL to produce a higher high on the three-day chart, signaling a shift in momentum favoring bulls. 

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Solana price edges closer to a volatile move 

Solana (SOL) price trades at $21.2 after producing a decisive three-day candlestick close above the 13-day, 25-day and 30-day Exponential Moving Averages (EMA) in the $20-region. This move has also produced a higher high relative to the September 19 swing high of $20.54. 

While the Solana price action is bullish, no doubt, the momentum indicators – Relative Strength Index (RSI) and Awesome Oscillator (AO) are also showing signs of improvement. The RSI, in particular, has flipped above the 50 mean level on the three-day chart, signaling that the strength of bulls is on the rise, The AO, however, is still below the zero mean level, lagging behind RSI. Traders need to keep a close eye on this index as a flip above the zero level could trigger a volatile move in SOL to the upside. 

The first target for SOL traders is the $25.8 level, which is roughly 22% away from the current level and is a good trader for short-term investors. But the $25.8 barrier is key from a long-term perspective; a flip of this hurdle into a support floor on the three-day chart could catalyze a 43% rally in Solana price to $37.1. This move would constitute a 76% gain from the current level.

Read more: Solana price sustains recovery rally despite falling daily active addresses

SOL/USDT 3-day chart

While the optimistic outlook for Solana makes logical sense, considering the recent price action and momentum indicators, investors need to be cautious. A sudden spike in selling pressure that pushes SOL to produce a three-day candlestick close below the $17.5 support level will create a lower low and invalidate the bullish thesis.

In such a case, Solana price could crash nearly 15% and revisit the $14.9 foothold.

Read more: Solana Price Forecast: SOL can rally 14% if RSI can reclaim this level