The SOL price has descended to $123, a level slightly higher than the potential bottom at $121. This formation could signal the establishment of a swing low, paving the way for a significant rally to the upside.
SOL Price Finds a Double Bottom?
On the 4-hour time frame, the SOL price has been trading within a descending channel, exerting downward pressure. However, this channel appears to be meeting a stronger force in the form of a major ascending trendline, coupled with a robust horizontal support level.
Currently, the price is contending with these two significant support levels. With the Stochastic RSI indicators trending back towards the top, suggesting upward price momentum, regaining these supports should not present an insurmountable challenge.
SOL Next Price Targets
The daily chart offers a higher time frame perspective, providing insight into potential price movements should a bottom have been established.
Once, and if, the SOL price successfully consolidates above the major supports, the subsequent targets are projected in the following order: resistance at $142, the top of the descending channel, the horizontal resistance at $156, and finally, a higher high at $172, which would confirm a trend change.
At the bottom of the chart, the RSI indicator appears to have broken through its downtrend and is potentially testing and confirming this breakout. If this confirmation occurs, it is expected that the price action above would follow suit and rally upwards.
SOL Hugely Bullish in Weekly Chart
The weekly view for the SOL price presents a decidedly bullish outlook. The horizontal support level at $126 is exceptionally strong, and the convergence of this level with the major ascending trendline strongly suggests a significant bounce from this point.
Examining the Stochastic RSI at the bottom of the chart further reinforces this bullish sentiment. This indicator, on the weekly time frame, is highly influential and indicates that the indicator lines are at their lowest point and poised for a cross back to the upside.
Considering that the 2-week Stochastic RSI indicators are rapidly descending and are likely to bottom out in the coming week, substantial upside price momentum may be imminent.
If the SOL price manages to establish a higher high at the $175 level, as previously noted, the macro swing high at $253 would become the next significant target. Investors should prepare for a potential major surge in the SOL price.