- 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.
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.
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.
Recommended Content
Editors’ Picks

Bitcoin retail traders remain fearful, here’s why BTC could test all-time high
Bitcoin retail traders and small wallet holders reduce their holdings amidst fear of a steeper correction in the largest cryptocurrency by market capitalization. BTC price consolidates below the $100,000 level on Thursday, erasing less than 2% of its value on the day.

US states push for Bitcoin reserves, could buy $23B in BTC
A total of 20 US states are pushing for Bitcoin Reserves, with some proposals already moving forward. If these bills pass, they would require $23 billion in Bitcoin purchases, creating significant demand.

Ripple's XRP eyes a recovery as investors switch toward accumulation
XRP investors have been accumulating following an uptrend in the Mean Coin Age metric. However, the XRP derivatives market is yet to recover from a 30% open interest decline in the past week.

Ethereum could see a boost as Cboe files for 21Shares to begin staking within its ETH ETF
Ethereum (ETH) could be set for increased demand in the coming months following Cboe BZX 19b-4 filing with the Securities & Exchange Commission (SEC) to enable staking for the 21Shares Core Ethereum exchange-traded fund (ETF).

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.