• Solana price breached through the ascending parallel channel’s lower trend line on October 10.
  • A recovery above the $151 support floor will allow the bulls a chance to rally to $200.
  • A failure to do so could knock SOL down to $136.50 or $124.83.

Solana price was on a slow uptrend since forming a local bottom on September 21. However, this steady climb was bears’ ploy in disguise as it created an ascending parallel channel. After coiling up for roughly four days, SOL broke below a crucial support floor, indicating a bearish outcome.

Solana price hopes for a recovery

Solana price set up roughly three higher lows and two higher highs since September 21. When these swing points are connected using trend lines, an ascending parallel channel is formed. This technical pattern has a higher chance of a bearish outcome. After nearly a week of consolidation, SOL sliced through the lower trend line of the channel, confirming that a downswing was in play.

However, all is not lost for Solana price as the bulls can make a comeback if the $151 resistance barrier can be flipped into a support level. Doing so will provide the buyers with a firm platform to band together and restart a rally. 

Moreover, the Momentum Reversal Indicator (MRI) has flashed a preemptive yellow ‘up’ arrow, suggesting that another red 6-hour candlestick will flash a green ‘one’ buy signal, forecasting a one-to-four candlestick upswing.

Therefore, despite the bearish outlook visible to the naked eye, SOL has a chance to make a comeback and retest the $200 psychological level. Investors need to keep a close eye on the $151 barrier in that case.

SOL/USDT 6-hour chart

SOL/USDT 6-hour chart

A failure to shatter $151 will lead to a 9.3% correction to $136.50. In some cases, Solana price could also extend this pullback and retest the $124.83 foothold.

On the other hand, a breakdown of $124.83 will invalidate the slight bullish outlook by creating a lower low.


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

Three reasons why DOGE price will not be back above $0.17 anytime soon

Three reasons why DOGE price will not be back above $0.17 anytime soon

Dogecoin price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. With such a move, losses would sum up to 55% of depreciation.

More Dogecoin news

Cardano price could go either way next week, but downtrend still rules

Cardano price could go either way next week, but downtrend still rules

Cardano price closes the week with another loss on the books. ADA price looks set to instead chose more downside as investors are turning away from cryptocurrencies. Expect another drop with at least a retest at $0.415.

More Cardano news

Why another 60% drop in SHIB price is inevitable

Why another 60% drop in SHIB price is inevitable

Shiba Inu price is too far gone from the significant pivotal level of $0.00001708 to make a strong comeback for now. Expect to see price action consolidate around current levels, slightly above $0.00001000, before another round of tail risks will come back to bite price action.

More Shiba Inu news

A weekly close below $0.50 spells another correction ahead for XRP price

A weekly close below $0.50 spells another correction ahead for XRP price

Ripple (XRP) price came close to a full recovery after the positive shift in sentiment on Friday, but as long as price action remains below $0.50, there is still no evidence of a fundamental turnaround in sentiment. Expect to see further downward pressure as several bearish pressures are not easing.

More Ripple news

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis