Analysts say Solana (SOL) could reach new highs
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According to trader Crypto Tony, the cryptocurrency remains bullish as long as Solana (SOL) trades above $75. Tony posted his opinion on X (formerly Twitter) on January 13, 2024.
In his post, the trader also showed the weekly chart of SOL, suggesting that the price could soon rise above $140.
Recently, SOL experienced a major pullback as the overall market experienced a significant correction. During that time, SOL price dropped to $92.95, despite the price rising above $110 in the days before that.
However, data from CoinMarketCap shows that the coin’s value recovered to $97.62. On January 13, SOL extended to $90.92 due to intensifying selling pressure.
Nonetheless, the bulls are trying to revitalize the price by exploiting the same area and using it as support.
With Solana trading above the lower limit of the Bollinger Bands (BB), the price could extend to $104.07. However, this can only happen if the bulls maintain a solid presence in the market.
In an extreme bullish scenario, SOL could rise to $141.27, which is where the 2.618 Fib extension lies. However, this would require the price to reach $103.75, which is the 0.382 Fib level and could act as support on a potential rise.
However, if bears step in, SOL could drop below $90. However, current momentum suggests this is highly unlikely.
The RSI shows that buyers have been outpacing sellers. As of now, the RSI is 52.77. If the indicator rises further, it could support the bullish thesis discussed initially.
A retest of the 67.52 RSI reading could push SOL towards $125, a price last seen on Christmas Day. Additionally, the Average Directional Index (ADX) is 15.69, indicating a neutral stance in the strong or weak direction.
Additionally, +DMI should override -DMI. If this happens, it could confirm SOL's bullish trend. Otherwise, the cryptocurrency may continue to trade sideways.
