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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.

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