Solana price rally continues with another 10% gain on the cards

Solana (SOL) price performed a textbook bullish trade setup on Sunday, with price action bouncing off a significant historic pivot level and transforming it into support. Thanks to that confirmation, the rally looks far from over, with $150 set as the target with the 200-day Simple Moving Average (SMA) as the cap to the upside. With the incoming support from Sunday, expect bulls to be convinced that a breakthrough above the 200-day SMA could well be on the cards.

Solana price signals a continuous rally towards at least $150

Solana price pulled a textbook trading setup over the weekend with SOL price piercing through $130.70 on Friday, and consolidating above it on Saturday. On Sunday, it tested the level for support with a subsequent bullish candle resulting into Sunday’s close. As a result of this action, Solana price delivered a bullish calling card to the markets, leading investors to overlook the Relative Strength Index (RSI) trading in overbought. Expect to see the rally continue in the current environment as bulls will have set their sights on $150. 

SOL price is thus in for at least another 10% gain with only the monthly R1 at $142.67 as a dealbreaker. As bulls attempted to push the price above there on Saturday but failed, repeating a similar trade setup will be vital before touching $150. Expect this to see SOL price pop above $142.67, close above, look for a test of support in the coming days before bouncing off, and swing back south to the 200-day SMA for a test before trying to print new highs by stretching to $160.

SOL/USD  daily chart

As already mentioned above, investors are ignoring the alarm signal given by the RSI trading severely in overbought. Should sentiment snap instantly, expect massive sell orders to swamp the market and push price aggressively against $130.70. With pressure mounting and the RSI in overbought, bulls will want to get out and quickly book profits, only adding more pressure to the downside, and possibly triggering a nosedive move back towards $120. Around there SOL price will get slammed against the green ascending trendline and even a possible false break with new investors picking up the pieces for a return later this week towards a rally.