- Solana price has been trading sideways for a couple of days, with the low side looking for support.
- SOL price has been trading in an overbought area on the RSI, which has kept fresh buyers away.
- Expect a firm rebound starting at $219.75, which will be the start of the next uptrend.
Solana (SOL) price has been stuck in a sideways trend after making new all-time highs last week. As price action starts to fade a little bit, buyers are looking for the next entry point to restart the next phase in the uptrend. With the RSI coming out of the overbought area, expect SOL price to first correct another 10% before buy-side volume picks up again.
Solana price momentum builds in favor of a bullish bounce towards new all-time highs
Solana price made new all-time highs on Sunday but instantly got hit by profit-taking. SOL price then looked for support around the monthly R1 resistance level at $239.70. Today R1 got broken and SOL price traded below it. Although bulls are trying to defend the R1, it looks that this area has lost the interest of new buyers and might see some more profit-taking in the coming hours.
SOL price will first need to see the Relative Strength Index (RSI) dipping further towards 50 after trading in overbought territory. This is an imperative signal for new buyers exploring entry levels for another uptrend in Solana price action. This level could be reached if the SOL price fades another 10% towards $219.75, a fundamental historical level since September 9.
SOL/USD daily chart
Solana price will see bears pushing price further to the downside with bulls seeking support at around $219.75. This level from September 9 has acted as strong resistance in the past and saw a clear break to the upside on November 02. It is yet to show its support, and that test looks to be happening anytime now as bears test the water.
Expect a test and rejection of further bearish price action in SOL as the $215.92 level holds firm, and with the RSI trading around 50, the longs should see a pick-up in volume from new buyers. Expect this to be the signal for another leg up in Solana price and present new all-time highs in a couple of days. Favorable tailwinds in the markets and global risk-on sentiment should accelerate and extend the move even further towards $300.00.
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.