SOL price forecast: Prices across the crypto market suffered another setback on Wednesday as markets globally reacted to news about the stubborn inflation in the US. Following the release of the Consumer Price Index (CPI), SOL price flash dropped testing support at $160 alongside Bitcoin price correcting to $67,500. Currently, Solana has a market value of $171 mirroring growing interest among traders willing to bet on the dips flipping profitable before the Bitcoin halving.

SOL Price Forecast With Volume Surging To $2.1B

Solana has witnessed a modest increase in trading volume as prices dropped earlier today, underpinning growing interest among traders. Intriguingly, the market cap remained buoyed rising subtly to $75 billion based on CoinMarketCap data.

Solana’s immediate support at $160 has been tested several times in the last few weeks, implying that chances of a recovery are high. A forming four-hour candle on the chart could further validate the impending recovery.

Although the Relative Strength Index (RSI) is not oversold, holding at 35 means that traders could consider seeking exposure to short-term long positions, thus accentuating the recovery.

SOL price chart | Tradingview

Assessing Solana Price Impending Rebound

A falling wedge pattern is another bullish signal likely to keep traders interested in buying more SOL. This pattern occurs after a considerable upswing in the price, allowing for consolidation as profit-taking takes place.

The lower trendline shows the bulls’ resilience while the upper trendline signals the growing influence of sellers. A breakout would be expected before the trendline lines converge.

Trading this pattern requires patience such that until a breakout above the upper trendline occurs, the uptrend will not be validated. Therefore, the best time to buy Solana would be slightly above the upper trendline, targeting a 10% move.

Some levels to consider going forward are the green band, representing support, the 200-day Exponential Moving Average (EMA), and the previous day’s open around the same area at $172.

Several four-hour candle closes above the 200-day EMA (purple) resistance would reinforce the bullish grip. The RSI’s recovery in the neutral area toward the overbought region above 70 is another signal to look forward to.

Profit-taking could begin at the $185 resistance level for traders but the most ambitious investors may want to see SOL price rally above the $200 mark. Movement above this level may ignite FOMO which may increase momentum to a new all-time high past $260.

The post SOL Price Forecast As Solana Plunges To $160, Is More Pain Due This Week? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am