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Solana Price Prediction: How high can the X-wave rally?

  • Solana price has fallen into a supportive level on the Relative Strength Index on larger time frames. 
  • Solana price could rally an additional 80% under conservative macro conditions.
  • Invalidation of the uptrend scenario is a breach of the low at $25.78.

Solana price shows interesting macro technicals. Ruling the SOL price out for one more FOMO-style bull run would be ill-advised.

Solana price could surprise you

Solana price consolidates near the bounds of an ascending trend line that has provided support throughout the summer. When zooming out to observe the technicals, it appears that the bulls are stepping in at a key level on the Relative Strength Index (RSI). 

Being that the SOL price went from oversold to rebounding from the 40 level on the RSI warrants the idea that, at best, a new bull run is starting.  At the worst, a connective X wave could continue to make considerable gains before failing.

Solana price currently trades at $43 as the centralized smart contract token has now rallied 68% since June’s low st $26. Solana price faces strong resistance at the $45 barrier. If  it can produce a close above this barrier on a weekly time frame, an additional 80% rally could be in the cards. The target is the upper bound of an ascending trend channel dating back to 2020. The Volume profile indicator also confounds the idea of an additional rally. 

tm/sol/8/16/22

SOL/USDT 2-week Chart

Still, like all digital assets, the SOL price could suffer a blow in the coming weeks. A breach of the $35 region is likely and could present a knife-catching opportunity. Invalidation of the uptrend scenario targeting $74 will be a breach below the swing low at $25.78. If the bears breach this level, an additional plummet of 75% towards $10 could be on the table. 

In the following video, our analysts deep dive into the price action of Solana, analyzing key levels of interest in the market. -FXStreet Team

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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