• 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

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price surpassed the key psychological barrier at $19,000 and sustained above this level. American businessman and author Robert Kiyosaki believes that it is a buying opportunity for BTC.

More Bitcoin News

Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin price underwent a tight consolidation between September 28 and 30, which eventually resulted in an explosive move up that collected the buy-stop liquidity resting above the September 27 swing high.

More Dogecoin News

Litecoin price set for a profitable week in a battered quarter

Litecoin price set for a profitable week in a battered quarter

Litecoin (LTC) price is set to jump higher this week as markets see bulls storming out of the gate this Monday morning. After a very volatile two weeks where the world seemed to be on fire again and the apocalypse was near.

More Litecoin News

Terra LUNA Classic price could crash 60% despite burn announcement and Coinbase, Robinhood listing rumors

Terra LUNA Classic price could crash 60% despite burn announcement and Coinbase, Robinhood listing rumors

LUNA Classic (LUNC) is the new shitcoin and has overtaken Shiba Inu's popularity, becoming a retail favorite. After Binance announced the LUNC burn program on September 26, the altcoin surged 66% and is currently hovering above another stable support level. 

More Terra News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP