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Solana price provides the best buying opportunity before SOL explodes to $40

  • Solana price provides an opportunity to accumulate after breaking out of a massive multi-month inverse head-and-shoulders setup.
  • This technical formation forecasts a 70% ascent from the point of breakout.
  • A three-day candlestick close below $18.68 will invalidate the bullish thesis for SOL.

Solana price is ready for bullish weeks, but Bitcoin’s recent slack has affected the breakout move. Depending on how Bitcoin price reacts next week, things could improve drastically for SOL holders. 

Read more: Solana price breaches multi-month bullish pattern, forecasts $40 SOL

Solana price awaits a signal to restart its ascent

Solana price set up an inverse head-and-shoulders setup between May 15, 2022, and April 11, 2023. This bottom reversal pattern contains three distinctive swing lows. The central valley or trough is named the head, and the troughs on either side of the head are referred to as shoulders. Hence the namesake inverse head-and-shoulders. 

Additionally, connecting the peaks of these swing lows shows a declining resistance known as a neckline and serves as a confirmation level for a breakout from this pattern. 

Between April 10 and 13, Solana price witnessed a massive spike in buying pressure that resulted in a  22% ascent that breached this setup, providing a confirmation of a breakout. The inverse head-and-shoulder technical formation forecasts a 71.09% upswing to $37.21, obtained by adding the distance between the right shoulder’s peak and the head’s lowest point.

Additionally, due to the ongoing circumstances, SOL has retraced 18% from the local top, providing sidelined buyers an opportunity to accumulate before this uptrend kick-starts.

SOL/USDT 3-day chart

SOL/USDT 3-day chart

While the outlook for Solana price is extremely bullish, investors need to be careful since Bitcoin price is freefalling. If the BTC selling pressure does not stop, it could be jeopardous for altcoins. In such a case, a three-day candlestick close below $18.68 will invalidate the bullish thesis for SOL. 

If the selling pressure on altcoins fails to cease, Solana price could slide 20% to tag the next support level at $14.95.

Author

Akash Girimath

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.

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