Solana (SOL) breaks above key level but can bulls take advantage?

Solana (SOL) breaks above key level but can bulls take advantage?

By Benson Toti - min read

  • Solana (SOL) price traded to above $20.00, hitting $20.50 after bouncing off $18.40 earlier this month.
  • Can bulls take advantage of positive sentiment for Solana to break higher?

Solana price has reached a key technical level, with the 24-hour upside to $20.50 retesting a 10-day high that’s an area of a previous support and resistance. With nearly 4% increase in the past 24 hours, Solana is outperforming all the top ten cryptocurrencies by market cap except XRP.

Bitcoin is back below $27k after latest SEC delays of decisions on multiple spot ETF applications, including that of BlackRock. Ethereum, buoyed by news of listing of the Valkyrie ETH futures ETF to near $1,700, has bounced lower too even as whales position themselves for a likely upswing.

What’s the outlook for Solana, an altcoin with a market cap of $8.3 billion? 

SOL price: what next for bulls?

SOL price’s uptick today comes as SOL bulls plot to stay above an ascending trendline support that’s anchored at the December 2022 buffer zone around $9.60.

As can be seen on the daily chart below, Solana has bounced higher (not perfect) off the positive trendline. The price action follows this week’s breakout from the downtrend line marked by the decline from July 2023 peak of $32.40.

Solana price outlook on the daily chart. Source: TradingView

Earlier today crypto trader Bluntz highlighted the potential for an inverse Head & Shoulder pattern. The pattern’s neckline is $20.30 and the 50-day exponential moving average provides the immediate supply zone $20.22. 

Holding at or above these levels is crucial to the bulls short term plans, an outlook supported by the daily Relative Strength Index (RSI) in an upsloping view above the neutral  mark.

The flipside of the above scenario is Solana price breaking lower beyond the $18.80 demand zone. Increased sell-side liquidity in this area could push SOL to around $17.60. From here, bulls may rely on the likely support near $14.50.