Solana price sets the base before SOL rallies 15%

Solana price has been teetering off a crucial support barrier, preparing for a massive run-up. The volatility squeeze indicates that the uptrend for SOL will be a quick one. The hurdles are well-defined, indicating a strong blockade.

Solana price ready for an upswing

Solana price bounced off the weekly support level at $135.7 thrice since January 7. The last retest of this barrier on January 11 led to a 17% ascent. The move failed to sustain, leading to a retest of the daily demand zone, extending from $115.5 to $144.7.

Consolidation seems to be in place as SOL retests the aforementioned barrier, signaling a shortage of volatility. Therefore, the resulting uptrend will likely see a quick, massive uptrend that retests the weekly resistance level at $174.3, present inside the daily supply zone, stretching from $169.7 to $179.1.

In total, this run-up would constitute a 16% gain from the current position - $149.1 and is likely where the upside is capped.

SOL/USDT 4-hour chart

While things are looking up for Solana price due to the ongoing consolidation, a failure to act from the bulls’ part would signal weakness. In this case, sellers could take control and knock SOL down to the weekly support level at $135.7.

Due to the massive demand zone, buyers have a chance to come back and restart the uptrend. However, a four-hour candlestick close below the $115.5 barrier will create a lower low, invalidating the bullish thesis. In this case, Solana price could revisit the $110.3 support floor, where the bulls could recuperate and prepare for the next leg-up.