Solana price primed for 16% rally following retest of monthly support
- Solana's price retests a monthly support level at $122.77 and rebounds sharply on Friday.
- Sideline buyers can accumulate SOL between $122.77 and $120.91.
- A daily candlestick close below $120.91 would invalidate the bullish thesis.
Solana's (SOL) price tested its monthly support at $122.77 and rebounded sharply on Friday. At the time of writing, SOL trades around $133.00, gaining roughly 4% in the day. Potential buyers on the sidelines seeking entry points may consider accumulating SOL between the $122.77 and $120.91 levels ahead of an anticipated upside rally in the coming days.
Solana price shows potential
Solana price retested its monthly support level at $122.77 and bounced up above $133.00 on Friday. This monthly support level roughly coincides with the daily support level of $120.91.
If this support level holds, SOL could rally 16% to retest its July 2 high of $155.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart have briefly slipped below their respective mean levels of 50 and zero. If bulls are indeed making a comeback, then both momentum indicators must regain their positions above their respective mean levels. Such a development would add a tailwind to the recovery rally.
SOL/USDT daily chart
However, if SOL closes below the $120.91 daily support level and forms a lower low in the daily time frame, it could indicate that bearish sentiment persists. Such a development may trigger a 13% crash in Solana's price to revisit the March 5 low of $105.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
