- Solana price breaks out above major bullish reversal pattern.
- SOL continues to face a difficult road higher due to large resistance clusters.
- Downside risks are decreasing every day.
Solana price action continues to vex bulls and bears alike, but bears are getting the brunt of the pain this time. Despite ample opportunity and multiple textbook short setups, bears are unable or unwilling to press Solana lower. Instead, SOL has created conditions that may start a new uptrend.
Solana price must stay above $87 to remain bullish
Solana price completed its most bullish move in over six months. That move occurred on Saturday when SOL closed above the upper trendline of the falling wedge, the lower trendline of a prior bull flag, the Tenkan-Sen, and it just eeked out a close above the 61.8% Fibonacci retracement at $76.
However, sellers took control on Sunday pushed Solana price below the Saturday open and low - but could not close below the falling wedge’s upper trendline. Instead, SOL bounce. Further attempts to push Solana back into the falling wedge on Monday were likewise thwarted.
If Solana price can close the Monday candlestick above $87, that may be enough confirmation for some sidelined buyers to step in.
A new long opportunity now exists for Solana price based on a successful daily close that returns above the Kijun-Sen, lower bull flag trendline, and the 61.8% Fibonacci retracement. The hypothetical long setup is a buy stop order at $92.30, a stop loss at $88, and a profit target at $120. In addition, a $5 to $10 trailing stop would help protect any implied profit made post entry.
SOL/USDT Daily Ichimoku Kinko Hyo Chart
The long idea is invalidated of Solana price returns to $85. However, if SOL does return below the falling wedge, then a retest of the 2022 lows near $75 is very probable.