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Solana Price Prediction: Is $30 on the cards for SOL?

  • Solana price is up 140% on the month.
  • SOL shows strong uptrend potential targeting $30 based on the technical indicators.
  • Invalidation of the bullish trend could occur from a breach of the $20 price level.

Solana price could rise to $30 in the near future. However, traders should be aware of SOL’s downside risk in the event that the uptrend fails.

Solana price points higher

Solana price is going through a cool-down phase after rallying impressively throughout the month. Since January 1, the centralized smart contract token has risen by 140%. As the price consolidates, subtle cues are suggesting that bulls in the market are still aiming for higher targets.

Solana price is currently auctioning at $24.45. The 8-day exponential moving average (EMA) continues to support the ascending rally hovering just below the current price. The Relative Strength Index (RSI), an indicator used to gauge trend potential by comparing and contrasting previous price action, shows the current rally coming down from overbought conditions. 

The consolidation at the 70 area on the RSI after rallying towards 80 could be a buy signal for traders to add to their positions. However, traders should be cautious as there is a subtle bearish divergence between the January 14 swing high at $24 and the January 20 swing high at $26. 

If the SOL price can hurdle all the $27 resistance zone, then $30 in the coming days stands a fair chance of occurring. The bullish scenario creates a potential 25% rally from the current price.

tm/sol/1/24/22

SOL/USDT 1-day chart

Invalidation of the uptrend could occur if the bears happen to breach the 21-day simple moving average (SMA) at $20. In doing so, the Solana price could witness a retracement towards the $17 support zone, resulting in a 30% decline from SOL’s current market value.

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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