Solana takes a step back, but a bullish outlook is still present

Solana (SOL) price is coming under some selling pressure as people make their way to the Christmas dinner table or do their last-minute shopping. As investors gently start to pull some funds out of their trades, some pullbacks in SOL price could be expected throughout the day to diminish risk going into the holiday season. Expect SOL price to look for ground support that could be present at the blue ascending trend line near $175.

Solana bulls look for support to start the holiday season

Solana price has been in a bullish triangle since December 15, with the blue diagonal trend line and the minor technical resistance at $195. With the blue trend line well respected and bulls joining the rally on repeated tests, expect to see a bullish breakout soon in the coming days. In the meantime, a preemptive test of $195 has seen rejection and could see further pulling back in SOL price towards the blue trend line for support. 

Going into Christmas evening, liquidity will start to die down, so expect to see price action come to a halt or some small sideways price action around $175. That level intersects with the blue ascending trend line intraday and would be an excellent level to hold with $195 still in view for a breakout. Expect the bullish setup to remain intact, therefore, but take a pause to enjoy the Christmas banquet before rebooting the rally with $220 as the next price target.

XRP/USD daily chart

As already mentioned, liquidity will be thin and start to die down further into the evening, so any strange market movements can not be ruled out. It could easily be the case that some investors jump on this technical environment and run the price up in a squeeze with low liquidity. This could see an extended wick on the candle that reaches $220, as the rally is likely to be very short-lived and almost impossible to join when it happens or to try to short, as the move will probably unfold in a matter of seconds or a few minutes. This also goes for any downside moves towards $130 from a break below the blue and orange ascending trend line.