• Solana price has been on a downtrend for more than six months, but things are changing for the better.
  • A bullish divergence ‘buy signal’ could trigger a 60% ascent in SOL to $66.19.
  • A daily candlestick close below $36.98 will invalidate the bullish thesis.

Solana price shows an interesting divergence on the high time frame chart that could kick-start a much needed swing rally. Therefore, investors need to pay close attention to SOL, which could allow patient buyers to capitalize on this opportunity.

Solana price ready for a quick run-up

Solana price has crashed 86% since its all-time high at $261.57 on November 6, 2021. This downswing is the same for altcoins, which have taken a massive haircut. Regardless, a trend line can be drawn connecting two lower lows for SOL, suggesting the possibility of a support trend line.

However, a much closer look at the recently formed swing lows on May 12 and May 26, suggests the potential for a bullish divergence. This technical formation contains an asset producing lower lows while the momentum indicator produces higher lows.

For Solana price, the Relative Strength Index (RSI) has set up higher lows, while the SOL has created lower lows. This setup resolves in a way that allows the underlying asset’s market value to rise.

Therefore, investors can expect Solana price to do the same. Considering the bullish flip in Bitcoin price and the possibility of a move to $35,000, investors can expect SOL to piggyback off the BTC’s bullishness and tag the range low at $66.19, indicating a 60% ascent.

SOL/USDT 1-day chart

SOL/USDT 1-day chart

Regardless of the bullish outlook, if Solana price continues to descend, it will undo the bullish divergence outlook. In such a case, if SOL produces a daily candlestick close below $36.98, it will create a lower low and invalidate the bullish thesis for SOL. In this case, Solana price could crash to $21.05.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP