Why the Solana price has investors in disbelief
- Solana price has risen 25% since the weekend.
- SOL price has repetively breached a parallel channel and climbed higher, which raises questions about the uptrend’s strength.
- Invalidation of the broader bearish thesis is a breach above $50.50.
Solana price has bears in disbelief. Still, placing a bearish entry should be strategic.
Solana price ascends on shaky grounds
Solana price rises in stair-step fashion to start the third trading week of July. The double-top formation is likely to be breached in the coming hours. A spike above the $43 price level could trigger an additional 10-15% rise towards $47. However, the structure of the bullish incline signals weakness and a 25% plummet to $31 could occur.
Solana price currently trades at $41 as the bulls have rallied 25% over the weekend. Retail traders in disbelief of the current uptrend’s momentum should be wary of placing a bearish entry too soon as smart money operators have higher time-frame liquidity levels in the $44 through $47 range. Additionally, the bulls have arisen while consistently relying on an ascending parallel channel. This could be viewed as a subtle bearish clue. Nonetheless, traders should stay out of the way until definitive short signals are placed in the mid-$40 zone.
SOL/USDT 3-Hour Chart
Look for definitive sell signals if and when the Solana price rallies towards $47. The bearish targets will be $34 and $31. Invalidation of the bearish thesis is a breach and close above $50.50. If the bulls can conquer the invalidation level, they should be able to rally towards $55, resulting in a 35% increase from the current Solana price.
Author
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.
