Why traders should not ignore Solana price action this week

Solana price has been consolidating below a stiff resistance barrier for quite some time. The recent uptick in buying pressure has pushed it above the said level, flipping it into a support floor. As a result, market participants can expect SOL to kick-start an explosive move to the upside.

Solana price awaits bulls’ comeback

Solana price is still stuck trading inside the range extending from $80.76 to $121.52. This boundary was formed after SOL rallied roughly 50% between January 24 and February 7. Rangebound moves are often simple to trade and usually involve a sweep above/below a limit followed by a retest of the other.

Likewise, Solana price swept the range low at $80.76 in February and rallied 83% to above the range high at $122.64. However, SOL extended well beyond the upper limit and set a swing high at $143.64.

The bearish market structure coupled with retail fear and profit-taking, however, resulted in a 32% correction that pushed Solana price back into the range and below the $102 to $104 support level and 50% retracement barrier at $101.70.

Since April 12, Solana price has been coiling up under these two crucial hurdles, awaiting a resurgence of buyers or bullish momentum to kick-start an upswing. As Bitcoin price begins a minor upswing, altcoins, including SOL, are likely to follow suit.

Hence, a surge in buying pressure that pushes SOL to flip the $104 hurdle into a support floor will trigger a 17% move to retest the range high at $121.52. In some cases, SOL bulls can extend the rally, allowing Solana price to tag daily candlestick closes at $136.92 formed on April 3 and 4. 

This run-up, in total, would constitute a 35% gain from the current position at $101.19 and is likely where the upside will be capped for SOL.

SOL/USDT 1-day chart

If Solana price produces a daily candlestick close below the range low at $80.76, it will create a lower low, skewing the odds in the bears’ favor and also invalidating the bullish thesis. In such a case, SOL could slide.