Solana price turns bullish after confirming trend reversal, 20% gains incoming for SOL?

Solana (SOL) price has confirmed a trend reversal, turning bullish after a stark fall beginning July to the pits of September. After pivoting on a key level, the purported Ethereum killer could be on course to foray into a $30.00 psychological range.

Also Read: SOL wants to fight but broader market bearishness won’t allow Solana price to go solely

Solana price turns bullish

Solana (SOL) price has turned bullish, meeting three technical principles based on the peak and trough analysis to confirm a reversal from its downtrend. Moving from a downtrend, the altcoin’s counter-trend move has seen the price break above the last lower high at around $19.62 of the prior downtrend. 

Solana price has also failed to make a lower low. Instead, it has recovered, holding above the   last peak high of $19.62 as mentioned above. Lastly, with the second criteria in place, SOL has formed a second higher low at around $21.30, and broken above a second peak high at around $23.58. 

SOL/USDT 3-day line chart

At the time of writing, Solana price is $24.82, recording a 5% increase in the last 24 hours. The move has seen SOL test a critical supplier congestion level at $24.86. This is a stiff resistance, marking several equal highs.

Based on the outlook of the Relative Strength Index (RSI), Solana price still has some upside potential. The position of this momentum indicator above 50 points to a strong resolve by the bulls, with its inclination to the north suggesting rising momentum. At 63, there is still more room to the north before the 70 level, where “overbought” narratives could come to mind.

The outlook is corroborated by the Awesome Oscillator (AO) indicator, which is holding in the positive territory to show bulls are in control. This adds credence to the bullish thesis.

Increased buying pressure above current levels could see Solana price rise 20% to clear the equal highs at $24.86, and potentially extrapolating the uptrend to the $30.00 psychological level. In a highly bullish case, SOL could reclaim the July 12 highs around the $32.00 range high. Such a move would constitute a 30% climb above current levels.

SOL/USDT 3-day candlestick chart

Conversely, if profit booking begins, the uptrend could be interrupted, with a potential retracement to the $20.00 psychological level. In the dire case, the slump could see Solana price tag the foot of the current uptrend at $17.84.

A break and close below the $17.84 level would invalidate the bullish thesis, with the next possible target for Solana price being the critical support at $16.48. Such a move would denote a 30% fall from current levels.