Solana price has more legs up, targets $130

Solana (SOL) price is on a path with a perfect technical playbook trade where the rally is now turning into an uptrend as more technical hurdles are being turned into support along the way. Although the Relative Strength Index (RSI) looks to be jumping into overbought, with tailwinds increasing every day, investors are looking beyond this signal and will only start to book profit once the next significant level is hit around $130.70, where a critical historic pivotal level sits. 

As markets keep frontrunning a breakthrough in peace talks, expect to see SOL price jump another leg higher and pop to $120 before running to the ceiling at $130.70, printing 25% of gains.

SOL price sees investors ignoring overheated RSI

Solana price sees a massive bullish delivery in the ASIA PAC with price action printing over 5% gains intraday. Expect this to continue going into the US trading session as market is poised to book another day of gains. With global markets on the front foot, investors look for an even more positive outcome in the Russia-Ukraine talks currently in the tail risk. As tailwinds are added and tail risks are being priced out, Solana has a significant incentive to run price action further up, starting with the first target at $130.70.

SOL price opened with a flat bottom right on the dot where the price closed the day before. This signals massive interest from investors and bulls to get in at this level as the price first pierced above $105.77 on Sunday evening. With the pullback, bulls are entering and are running price action beyond 5%, with the first cap at $120. The monthly R1 is to be ignored as, seeing previous months, this level does not hold that much importance, but instead is an area to quickly cross to test $130.70, making a 25% rise from the opening price this morning.

SOL/USD Daily chart

Although a few tail risks are being priced out, some tail risks remain present with COVID numbers rising in China and certain provinces back into quarantine. This will put pressure on the supply chain disruption that finally saw some relief in the past few weeks. More negative news out of China on more provinces into lockdown could weigh on global growth and see markets take a step back, with Solana price tanking back to $90.00, just below the 55-day Simple Moving Average.