The Solana Price has rediscovered its uptrend, surging almost 50% in the last two weeks, but sellers have emerged towards trend resistance. However, if the bulls muster the strength to absorb the selling and push Solana (SOL) above $180, the price may hit turbo.
Solana performed incredibly in the third quarter, jumping 970% between the 18th of July and the 7th of Sept. However, after topping out at $216, the Solana price halved in the following three weeks. The crypto market suffered a series of setbacks in September. At the start of the month, the fallout from the near-collapse of Chinese property giant Evergrande sent shockwaves across risk assets. US indices suffered heavy losses, driving the US Dollar higher and cryptocurrencies lower. On the 20th, the Peoples Bank of China (PBOC) revealed enhanced measures against cryptos, including banning offshore entities from offering services to Chinese nationals.
The news triggered a second wave of selling, forcing broad-based liquidation. Subsequently, Solana dropped to a low of $115.60 on the 21st. However, whilst Bitcoin (BTC) and Ethereum (ETH) struggled to bounce from the lows, Solana recovered to $140 by the end of the month.
Cryptocurrencies received a welcome boost on the 30th when fed Chair Jerome Powell told policymakers he has no intention of outlawing digital assets. The news sparked a surge of buying activity, lifting BTC 20% off the lows, helping the Solana price to $178 by the 3rd of this month. However, the rally has tapered off, and for the last two days, SOL has been consolidating between $160-$180.
The daily chart shows the constructive price action has lifted the SOL token above the 50, 100, and 200-day moving averages at $151, $147, and $153.50, respectively. Furthermore, as a result, a rising trend channel has formed. The bear-flag formation is considered a bearish continuation pattern, which often results in the downtrend resuming. However, key moving averages reinforce the trend support at $144. On that basis, I expect the Solana price to continue to trend higher.
Initial resistance is seen at the top edge of the rising channel at $180. If SOL clears the trend resistance, it will confirm a break-out and invalidate the bearish pattern. In that event, momentum buying should encourage the token higher. A logical target is the September all-time high at $216. However, if BTC and Ethereum continue to advance, Solana should outperform. Therefore, if confidence returns to the broader market, the Solana price could achieve a new record before year-end. The bullish thesis remains as long as the price respects the uptrend. Therefore, if SOL drops below $140, it will invalidate the view.
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