Solana’s (SOL) price has been firmly trending upwards since mid-September, presenting a bullish outlook. However, the Ethereum killer recently created a bear trap as it sliced below the governing technical pattern’s lower boundary, confusing predictions. In fact, once SOL achieves to reclaim $209, the token could skyrocket 54%.
Solana price has printed an ascending parallel channel on the daily chart, hinting at a positive outlook. On November 26, SOL sliced below the current chart pattern trend line, indicating the uptrend is at risk. However, technical indicators recommend that this recent low only formed a bear trap.
Meanwhile, Solana’s price fell to $182, the Relative Strength Index (RSI) declined to reach a new low – indicating a bullish change. This trading signal indicates that the bears are losing control over the market. At the same time, the bulls are ready to take over, marking the end of a temporary downtrend.
Therefore, the current chart pattern suggests that the Solana price could tag the upper boundary and 127.2% Fibonacci retracement level as its next bullish target at $325, marking a 54% climb.
To execute the bull recovery, Solana price should reclaim the lower boundary of the parallel channel at the 78.6% Fibonacci retracement level at $209, coinciding with the 21-day Simple Moving Average (SMA). At the same time, Solana’s price will encounter additional barriers at the 50-day SMA at $225, compared to the resistance line given by the Momentum Reversal Indicator (MRI).
The final hurdle shows to be at $259, the altcoin’s all-time high, which sits near the middle boundary of the governing technical pattern before SOL aims for the optimistic target at $325.
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Source: Cryptocurrency - investing.com
