Traders can maximize returns for Solana price at this level
- Solana price is stuck trading between the $41.25 and $55.97 barriers.
- Investors can accumulate on the retest of $41.25 and expect SOL to rally 50%.
- A four-hour candlestick close below $41.25 will invalidate the bullish thesis.
Solana price witnessed a ripple effect as Bitcoin triggered an uptrend on May 30. This bullish outlook caused SOL and other altcoins to rally as well. However, for the Layer 1 token, a pullback to vital levels is likely, allowing market participants to accumulate at a discount.
Solana price to provide better opportunities
Solana price bounced off the $41.25 support level twice in May. This higher time frame support level has prevented a steep correction and allowed bulls to recuperate and trigger an uptrend. The latest retest on May 28 catalyzed a 20% run-up to $48.39, which is just below the 100 four-hour Simple Moving Average (SMA) at $49.38.
Since BTC is due for a retracement to stable support levels, investors can expect SOL to follow along. Hence, a 12% pullback seems plausible for Solana price, which will retest the $41.25 barrier again.
A bounce off this level could be the key in triggering a run-up that smashes through the 100 four-hour SMA at $49.39 and retests the upper limit at $55.97. This move would constitute a 36% ascent.
However, the upside for Solana price could be capped after a revisit to the 200 four-hour SMA at $63.71 or the $62.16 hurdle present just below the SMA.
SOL/USDT 4-hour chart
While things are looking up for Solana price, a four-hour candlestick close below $41.25 will invalidate the bullish thesis by producing a lower low. This development could see SOL crash to $37.37.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
