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Solana price prints three-in-a-row positive days with medium-term downside unchanged

  • Solana price pops higher again as bulls continue a three-day winning streak.
  • SOL price could still move slightly higher in the very short term.
  • Medium-term, nothing changes, and the bear market continues.

Solana (SOL) price offers some room for bulls to print a few days of gains. Certainly, on Monday, the markets rolled over; still, SOL price could withstand the turmoil and print a positive session, although slim. Looking forward, for this week, SOL price could still move 16% in a positive direction, as traders will need to keep a nearby profit target as the bear market is nowhere near over.

SOL price enjoys a bit of upside momentum

Solana price action is finally heading back north after a long period of subdued price action. That is reflected clearly in the Relative Strength Index (RSI), which has been trading too close or even at the oversold barrier for far too long. As with everything in markets, some decompression is needed as bulls will want to book some gains, and bears need to wait for a better entry-level to maintain the longer-term bear trend that is going on in cryptocurrencies.

SOL price thus still has some room to go with 16% of gains still on the table. That would mean that Solana price could end up trading near $38, between the monthly pivot and the 55-day Simple Moving Average which will act as a cap to the upside. It has to be underlined that this is a very short-term trade and not the right moment to buy in and keep sitting on that position in the hope that it will rally 100% because it will not happen in this current market momentum.

SOL/USD Daily chart

SOL/USD Daily chart

One risk to the upside forecast is that headline risk from geopolitical tensions may put pressure on risk assets, including cryptos. Russia and Ukraine tensions remain elevated and Turkey has entered into a spat with Greece over some islands in the mediterranean, warning it could even start an invasion. This adds tension in the eurozone and could only mean more stress and fear amongst investors, and lead them to pull more cash out of risk assets and cryptocurrencies, with SOL prices potentially dropping back to $30 and $26.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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