- Solana price is slowly planning a recovery after a bear trap has been formed.
- $209 will be a key level to watch as SOL must rise above it in order for a 54% rally to be on the radar.
- The Ethereum-killer will find reliable support at $185 if selling pressure increases.
Solana price has been steadily trending upwards since mid-September, providing a promising bullish outlook. However, the Ethereum killer recently formed a bear trap as it sliced below the governing technical pattern’s lower boundary, confusing forecasts. Once SOL manages to reclaim $209, the altcoin could skyrocket 54%.
Solana price needs to reclaim critical level
Solana price has printed an ascending parallel channel on the daily chart, suggesting an optimistic outlook. On November 26, SOL sliced below the prevailing chart pattern’s downside trend line, indicating that the uptrend is in jeopardy. However, technical indicators suggest that this recent low only formed a bear trap.
While Solana price fell to a swing low at $182, the Relative Strength Index (RSI) failed to reach a new low – indicating a bullish divergence. This trading signal suggests that the bears are losing control over the market, and that the bulls are ready to take over, marking the end of a temporary downtrend.
The prevailing chart pattern suggests that Solana price could tag the upper boundary and 127.2% Fibonacci extension level as its next bullish target at $325, marking a 54% climb.
In order for the bulls to execute a recovery, Solana price must reclaim the the lower boundary of the parallel channel as support at the 78.6% Fibonacci retracement level at $209, coinciding with the 21-day Simple Moving Average (SMA).
Solana price will battle additional hurdles at the 50-day SMA at $225, corresponding to the resistance line given by the Momentum Reversal Indicator (MRI). The final hurdle appears to be at $259, the altcoin’s all-time high, which sits near the middle boundary of the governing technical pattern before SOL aims for the optimistic target at $325.
SOL/USDT daily chart
The MRI flashed a bottom signal on the second November 27 candle, adding credence to the bullish outlook.
However, if the bears decide to take back control, Solana price will discover an immediate foothold at $185, the November 18 low, corresponding to the MRI’s support line. An additional line of defense will appear at $169, where the 200-day SMA and 61.8% Fibonacci retracement level reside.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices struggle after mixed US NFP data

BTC and ETH prices experienced a temporary pullback as crypto market participants reacted to the news of the US NFP data release for May. Similar to the situation in April, the number of Nonfarm Payrolls added far exceeded the market’s expectations.
Solana: A break above $26.30 would spell doom for bears

SOL price has been trading with a bullish bias after an explosive breakout on December 30. However, because of volatility and the gloom in the broader crypto market, SOL has been unable to break above a key hurdle at $26.30, causing the price to trade sideways.
Bitcoin Weekly Forecast: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols

Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish

Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.