|

Solana price gains momentum to break past $100

  • Solana price shows a falling wedge formation, hinting at a bullish move.
  • A move past $91.04 will confirm a breakout and propel SOL to $112.84.
  • A daily candlestick close below $75.33 will invalidate the bullish thesis.

Solana price action for the past month and a half has set up a bullish pattern. Investors can expect an explosive move as SOL breaks free from this setup.

Solana price awaits breaking point

Solana price set up two lower highs and three lower lows since January 22, giving rise to a falling wedge. This technical formation – which slopes downward – is actually bullish and forecasts a 23% upswing, determined by measuring the distance between the first swing high and low and adding it as an extension from the breakout point.

Hence, investors need to await a decisive move beyond the upper trend line of the falling wedge at roughly $91.04. Assuming such a surge occurs, this theoretical projection puts the target for Solana price at around $112.84.

There is a good chance buyers might take a short break around $105.82 due to the formation of equal highs. 

Interested investors can enter a long position at $91.04 after a breakout confirmation and book profits at $105.82 and $112.84. In total, this move would represent a 23% ascent for Solana price.

A slightly riskier way to take this trade would be to enter a long position at $81.34 and book profits at $112.84. This run-up, however, would constitute a 39% gain.

SOL/USDT 1-day chart

SOL/USDT 1-day chart

While things are looking up for Solana price, a correction toward the $75.33 support level will open up doubts. A daily candlestick close below $75.33 will invalidate the rising wedge’s bullish thesis for SOL. 

In such a case, Solana price might revisit the $65.91 support level – although at that point buyers will have the opportunity to attempt another run-up.

Author

Akash Girimath

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.

More from Akash Girimath
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP trade under sustained selling pressure despite mild ETF inflows

Cryptocurrency prices remain under pressure as a risk-off mood persists on Friday, with Bitcoin consolidating its losses above $62,000. Altcoins, including Ethereum and Ripple, are extending their weakness, trading near lower support levels around $1,600 and $1.12, respectively.

Bitcoin Weekly Forecast: After the bloodbath, everyone looks at $60,000

Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit. A reactionary spike in on-chain activity and social chatter, reflecting a strength of community, but fails to absorb the price decline.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes dumped his entire Zcash holdings on Friday, a day after selling his HYPE and NEAR holdings. Zcash is down 13% so far on Friday, extending the 26% drop from the previous day.

Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.