SOL Price Trapped In A Range, Will Bulls Rise Above?

The post SOL Price Trapped In A Range, Will Bulls Rise Above? appeared first on Coinpedia Fintech News

With a lukewarm greeting of the New Year, Solana’s price trend enters the year on a lateral indecisive note, putting a short break to the uptrend. Prolonging the consolidation range in the 4H SOL price chart, the trapped momentum may soon give a decisive breakout trend. 

Despite the increased chances of an upside breakout and a potential bull run beyond $125, the sideline traders await confirmation. However, with the silent beginning to a New Year, the range formation warns of a bearish takeover if the buyers fail tor regain momentum. Nevertheless, the overall optimism around the SOL price prediction teases a break on the positive side.

Source – TradingView

Rising to the overhead peak at $125, the SOL price meets excessive overhead supply, leading to a minor but quick fall at the end of 2023. With the retracement trend retesting the psychological barrier of $100, the sideline traders get an opportunity to enter at a crucial support level. 

Currently, the retest phase prolongs into a range between $98 and $108, trapping the trend within and teasing a pivotal move shortly. Further, the boundary of this range coincides with the 38.20% and 23.60% Fibonacci levels, respectively. Hence, a break on either side will prove pivotal for the Solana price trend. 

As of now, the SOL price trades at $102.03 with an intraday move of 0.44%, leading to an indecisive candle. In short, this altcoin would need a decisive breakout beyond the range boundaries to initiate a directional trend.

Technical Indicators:

RSI Indicator: The RSI slope in the 4H chart remains sideways below the halfway line. This reflects a slightly stronger bearish side.  

MACD Indicator: The bearish crossover in the MACD and signal lines in the daily chart reflect a trend reversal possibility with the retest turning into a stronger pullback. 

Hence, the momentum indicators reflect a rise in selling pressure. 

Will SOL Price Range Lead To A Drawback?

Under the influence of consolidation range formation, the Solana price would likely give a decisive break shortly. However, the breakdown fall could cause prices to tumble 10% down to revisit the $90 mark.

On the positive end, the upside potential for the SOL price comes at 25% to rechallenge the $125 swing high. In case of a breakout, the uptrend can reach the $150 mark.