Solana (SOLUSD) made a new 10-day High as it is rising aggressively today towards the 1D MA50 (blue trend-line), which is the first level of Resistance. We expect this rally to be the start of the new Bullish Leg of the 5-month Channel Up for three reasons.
Firstly, last week's Low was exactly on Support Zone 2, which is the pivot level of the October 29 High. We've had the same bounce on Support Zone 1 when the previous Bullish Leg of the Channel Up started on September 06 2024.
Secondly, the December Low almost tested the 1D MA200 (orange trend-line) before rebounding, which is the long-term Support. This is now exactly on the bottom of the Channel Up.
Thirdly, the December 22 Low also made the 1D RSI rebound on the oversold barrier (30.00). As you can see, every time the RSI touched this oversold level since April 13 2024, it was a strong buy signal to at least the 0.786 Fibonacci retracement level.
As a result, our short-term Target 1 is $242.00 (the 0.786 Fib). Beyond that, if the price breaks above Resistance 1 (265.00), we will buy the bullish break-out and target the top (Higher Highs trend-line) of the Channel Up at $380 (Target 2). As you can see, that would be a +119% rise from the December Low, similar to the % rise of the first Bullish Leg.
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