Solana Price Forecast: SOL holders need to exercise patience to capitalize on 40% rally
- Solana price uptrend is contingent on two key support levels of $26.41 and $28.80.
- A bounce off this level could send SOL toward $38.84 and $48.24 hurdles.
- A breakdown of $26.41 could crash the altcoin by nearly 20% to $21.28.
Solana (SOL) price and SOL holders are in a state of confusion about what to expect next. The future of SOL will be dictated by two key support levels and, more importantly, the maintenance of the bullish market outlook.
Also read: Solana has a good chance of being 2024’s best performer
Solana price at crossroads
Solana price is in a precarious position after breaching the $26.41 and $28.80 hurdles. While these blockades were breached, they have not been tested as a support level. So, a pullback that knocks SOL lower could shatter these barriers.
Additionally, the swing highs produced since October 23 are not confirmed by the Relative Strength Index (RSI), which shows waning bullish momentum. So, a pullback is all but guaranteed for SOL.
SOL bulls need to keep Solana price above $26.41 and $28.80 support levels. If successful, an extension of the rally is likely. But for this bullish move to occur, the overall outlook of the market needs to remain neutral or bullish.
In such a case, Solana price could see itself targeting the buy-side liquidity resting above $38.84 and $48.24, roughly 38% and 68% away from the $28.80 support floor.
Read more: FTX and Alameda Research prepare to sell $60 million worth of Ethereum, Solana and other assets
SOL/USDT 4-hour chart
It is clear that the outlook for Solana price is contingent on the $26.41 and $28.80 support levels and the overall market outlook. But if the spot ETF approval news or another lawsuit is announced, it would deeply affect the sentiment of the crowd and potentially trigger a sell-off.
In that case, Solana price could produce a daily candlestick close below $26.41, this move would invalidate the bullish thesis and catalyze a near-20% correction to the October 12 swing low of $21.28.
Read more: Solana weekly gains in jeopardy as FTX transfers $15 million worth of SOL to exchanges
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
