By Franklin Smith
- Solana price gradually plans a recovery following a bear trap formation.
- Meanwhile, SOL has to stabilize beyond $209 to support a 54% upswing.
- The ETH-Killer will secure support near $185 with increased selling pressure.
Solana has maintained a steady upward trend since mid-September, printing an impressive bullish picture. Nevertheless, the recent price actions had the ETH-Killer forming a bear trap while slicing under the primary technical pattern’s bottom border, puzzling analysts. If Solana manages to overcome $209, the alternative coin might surge 54%.
SOL Price Should Reclaim Crucial Level
The daily chart shows Solana’s price forming an ascending channel, indicating an optimistic picture. On 26 November, the alt sliced under the governing chart’s downward trend-line, confirming dipping risks. Meanwhile, technical indicators show that the latest low created a bear trap.
As SOL had its price plunging towards the $182 swing low, the RSI indicated a bullish divergence by not touching a new low. Such a trading gesture suggested bears losing market control as bulls gain momentum to dominate. That marks an end if the temporary downswing.
The prevailing hart indicates that SOL might touch the top border and the 127.2% FIB retracement, aiming a 54% surge to the bullish target of $325. Meanwhile, Solana’s price has to reclaim the parallel channel’s lower border as its supports around 78.6% FIB retracement at $209 for bulls to launch a recovery. The level corresponds with the 21-day SMA.
SOL price will encounter more obstacles around the 50-day Simple Moving Average at $225, matching with the resistance line by Momentum Reversal Indicator. The last challenge might emerge at $259, Solana’s ATH that sits around the primary technical pattern’s middle boundary. After that, SOL will eye its optimistic aim at $325. Meanwhile, the Momentum Reversal Indicator displayed a bottom sign on 27 November, supporting the bullish picture.
If bears step up to dominate once more, SOL will secure a foothold near $185, 18 November low, matching the support line by the MRI. The altcoin might discover an additional defense line at $169. Keep in mind that the 61.8% IB retracement level and 200-day Simple Moving Average.
By davide bonaldo – shutterstock.com