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Solana price is still on track for $18.66 after hiccup in Monday’s US session

  • Solana price is still steady, moving upwards after the slip from Monday.
  • SOL was able to contain the losses and still eke out small gains.
  • Expect a bit of a delay before $15.07 will break and $18.66 still as the profit level.

Solana (SOL) price is quietly breaking through a key technical barrier that has put pressure on the downside. Although the break did not come with a violent breakout, SOL could still survive the volatile trading session in the US. Bulls were able to stay in and could be seen ticking $15.07 with a bit of a delay as the final rally for 2022 still gets underway.. 

SOL traders should be cautious as they advance

Solana price sees bulls taking over a very interesting level above the red descending trend line that has been present for most of 2022 and has acted as an axis in decline, with SOL trading alongside it. Although the moment was particularly strange, as global markets were on the back foot, Solana price traded through that red descending trend line and looks bullish for another uptick. With the Relative Strength Index (RSI) still very much subdued, there is ample reason why SOL could be pushing higher in the coming days.

SOL first needs to face $15.07, which is the first top-level that has not been tested since mid-November. Once bulls are fit and strong enough to break and close above that level, they might even add to their positions if a small fade is underway to test for support at that same $15.07. From there, roughly 25% of gains are open for the taking, with $18.66 as the critical level to test. 

SOL/USD daily chart

SOL/USD daily chart

After the whipsaw move of Monday, the risk is now coming from any data point out of the US that could hold an upside surprise. A too-strong economy is not good in order to fight off inflation at these peak levels and thus requires the economy, and subsequently its data points, to come down. The rip of equities markets on Monday was due to a pickup in sentiment. With US inflation numbers coming next week, another peak would mean a nosedive move toward $10 with big disappointment in global markets.

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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