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What does the Solana price need to pump back to $40

  • Solana price rose by 135% during the first two weeks of January.
  • SOL could rise to $40 if the 2-week candle settles at $27 or higher. 
  • Invalidation of the bullish trend could be a tag at $17.45.

Solana price is on every investor's immediate radar as the digital token's performance this month has been bull-run nostalgic. Since January 1, the smart-contract token has risen by 135% to trade above $23. As the price cools off post-rally, Solana remains firm and unbothered by the inevitable profit-taking. It is no doubt that the technicals being displayed could be the early stages of a much larger rally.

Solana price poised for ascension

Solana price is currently auctioning at $23.16. According to the Binance Exchange API, Solana's impressive two-week surge saw an influx of $147 million worth of transactions. The volume justifies the bullish price action as the previous two-week auction declined by 17%, under $53 million in transactions.

The next hurdle for SOL to accomplish is the broken support zone at $27. A 2-week candlestick within or above the zone would deem the uptrend genuinely bullish for weeks to come. Under classical technical analysis, the theory is that settlement within a previous trading range is a first sign of right to passage, with intentions to challenge previous liquidity levels and swing trade pivot points. The $40 swing highs established in October would be an ideal first target zone resulting in a 75% increase from Solana’s current market value.
 

tm/sol/1/17/22

SOL 2-week chart

For traders looking to scalp the next wave up, the $17.45 level could be used as an invalidation point of the current trend. If the $17.45 barrier is breached, SOL could be in jeopardy of a much larger pullback targeting $14, resulting in a 40% decline from the present Solana price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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