Solana Price Prediction: SOL continues its 10% rally after fakeout

Solana price swept deep below the range low at $25.12 on July 22 and set up a local bottom at $22.70.
After undoing all the losses in the following four days, SOL is ready to extend this rally by another 10%.
Invalidation of this bullish outlook will occur if the altcoin creates a lower low below $22.76.

Akash Girimath FXStreet

Solana (SOL) price slipped below a crucial support structure to balance out an imbalance. Completion of this goal was quickly followed by a spurt of buying pressure that undid the recent losses. Now SOL could trigger another swift rally to collect liquidity to the upside.

Solana price ready to breakout

Solana (SOL) price created a range, extending from $25.12 to $29.80 on July 14. After producing a set of lower highs for the next week, SOL breached the support level at $25.21, resulting in nearly 8% in losses.

After this decline set up a local bottom at $22.70, Solana price kickstarted its recovery rally that created another inefficiency, extending from $23.97 to $24.49. While a dip into this area would be a good opportunity to buy, it is unlikely SOL holders will get a chance to accumulate. Regardless, setting up some bids at these levels would be a good idea for bulls.

A bounce at the aforementioned inefficiency or from the current position at $25.41 would result in an extension of the uptrend for Solana price. This move will target the range’s midpoint at $27.50 and would constitute a 10% gain.

But in a highly bullish case, SOL could even go for a sweep of the range high at $29.80, bringing the total gain to 20%.

SOL/USDT 1-day chart

On the other hand, if Solana (SOL) price creates a lower low below $22.76 on the four-hour or higher timeframe, it would invalidate the bullish outlook.

Such a development could see SOL target the sell side liquidity resting below the July 13 swing low at $21.34.

Also read: Top 3 cryptocurrencies to focus on in July 2023 and their targets: SOL, OP, COMP

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Author

Akash Girimath

FXStreet

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.