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Solana price rallies by 35% to start the near year, will the uptrend last?

  • Solana price has rallied by almost 35% since January 1. 
  • SOL has the potential to target December's monthly high at $14.88.

  • A daily candlestick close beneath $11.51 would show potential for a 30% retracement. 

Solana price has shown strong bullish price action in recent days. The uptrend looks likely to continue unless the bears alter the narrative based on the factors written below.

Solana price fights back

Solana price has pulled off applaudable market behavior, returning 35% of lost funds to the hands of investors since January 1. While most cryptocurrencies have witnessed little to no gains, the smart-contract token has become a true outperformer, forcing traders to consider joining the market for more uptrend gains. 

Solana price is currently trading at $13.21. On December 29, the Solana token briefly fell into an $8 low, which was quickie scooped up by sidelined bulls and catalyzed the current rally. As of January 3, the bulls have successfully breached both the 8-day exponential moving average (EMA) and the 21-day simple moving average (SMA), deeming the current uptrend move genuine enough to take a risk at higher targets. 

If the market is genuinely bullish, December's monthly high at $14.88 should be the next target for smart money operants to offload their leveraged positions. Solana would rise by an additional 15% as a consequence of the bullish scenario.

tm/sol/

SOL/USDT 1-Day

If the uptrend is at its wits, the bulls will need to lose support from the recently breached 21-day simple moving average at $11.51. The SMA resides 10% below Solana's current market value. A daily candlestick close below the indicator would set up a scenario for the bears to re-route south and target the recently established support zone at $9. The SOL price would decline by more than 30% if the bearish scenario manifests.  

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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