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Solana price is a perfect Catch-22 as bears and bulls are caught between a rock and a hard place

  • Solana price is down for the week just a little over 1% on Friday.
  • SOL sees both its upside and downside potential caught between a firm cap and floor.
  • With the current rally in Bitcoin price, bullish sentiment seems in favor, although a breakout is not granted just yet.

Solana (SOL) price is not holding attractive cards for upside potential in the longer run. Bulls were unable to make it all the way up to the cap this week and even saw a rejection happening a few cents before actually testing it. To the downside a pivotal supportive level at $19.04 keeps bulls from falling into the abyss that could see price action slide below $10.

Solana price will consolidate for a breakout trade in the coming weeks

Solana price thus needs to await a breakout as both cap and floor are currently proving too strong to be broken. Even with Bitcoin price rallying firmly this week, SOL is not enjoying the tailwind of it while other altcoins like Cronos are. This puts SOL in a rough spot and makes it less attractive for investors and bulls to engage with.

SOL will consolidate with buyers and sellers being pushed toward each other, followed by an overdue breakout trade. Expect that breakout to be bullish as Solana price will start to catch up with its peers in the altcoin space that have already rallied higher this week. Once both the 55-day and the 200-day Simple Moving Averages (SMAs) have been taken out, expect $28 to be a nice handle to book some profit for the bulls.

SOL/USD  weekly chart  

SOL/USD  weekly chart    

Big risk comes with a break of that $19 handle that underpins the price action in Solana. Once that breaks, a quick nosedive move could get underway. Not that SOL would go back to $8, but rather around $10 some support should be coming in, which still amounts to a 45% loss. 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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