- SOL price appears ready for a massive bounce to $176 amid a possible bottom signal.
- Nevertheless, Solana will encounter multiple hurdles before reaching the optimistic aim.
- Slicing under the governing technical pattern’s lower boundary may mean trouble for SOL buyers.
Solana (SOL) prepared to reverse its underperformances period, eyeing a 25% surge. A vital technical indicator shows that the alt might have formed a swing low on 7 January, and a rebound might be imminent.
SOL Price Awaits 25% Surge
SOL price has printed a plunging parallel channel on its twelve-hour chart, indicating a bearish picture. Nevertheless, the MRI (Momentum Reversal Indicator) has displayed a bottom gesture, suggesting a possible price reversal.
Solana’s first resistance stood at 23.6% FIB retracement of $149. The other one locates at $160, the level where the prevailing chart patterns middle boundary, 38.2% FIB retracement area, and 21 12Hr Simple Moving Average meet.
The bullish aim sits around the governing technical setup’s upper boundary near $176. The level intersects with 61.8% FIB retracement area, MRI’s resistance, and 50 12Hr SMA, authorizing a 25% upswing.
Higher aspirations might eye 78.6% FIB retracement zone, matching the 200 12Hr Simple Moving Average of $188. However, bulls need to overcome the mentioned obstacles for such a move.
If SOL’s failure to rise high against sellers’ distributions might mean further drops towards 8 January low near $133 before touching the critical support flows at the parallel channel’s lower border at $129. Breaking beneath this defense line will trouble buyers.
Nevertheless, the SOL price seems ready for a massive rebound, targeting a 25% run-up to $176. Meanwhile, bulls need to overcome several obstacles to attain the optimistic goal. The alt might depend on overall market sentiment in its upside journey.
For now, bearishness seems to engulf the market as most assets present downtrends in 2022. Bitcoin, the leading crypto, remains 10% lower as far as the year is concerned.
For now, BTC requires an upsurge past $50,000 to trigger bullishness in the market. That way, SOL can sail higher to its targets with fewer hurdles. Meanwhile, losing the lower barrier at $129 may mean dominant bearishness for Solana.