- Solana price has multiple bullish signs coming together, signaling a bright future.
- The breakout above $21.34, combined with the supporting momentum indicators, forecast a minimum of 28% upswing.
- A breakdown of the $18.70 support floor will invalidate the bullish thesis for SOL.
Solana price shows quite a few developments on the daily chart, all of which point to a bullish future for SOL holders. Investors can expect a quick run-up, which could develop into a medium-term uptrend if these optimistic conditions remain bullish.
Also read: Solana Price Forecast: A break above $26.30 would spell doom for bears
Solana price ready for a breakout
Solana price formed an inverse head-and-shoulders setup on the daily chart, below the $21.34 resistance level. On June 4, SOL breached this hurdle and flipped it into a potential support floor. Iif the ongoing pullback holds above $21.34 after a thorough retest, investors can expect the uptrend to continue.
Further supporting this narrative is the Relative Strength Index (RSI), which has flipped above the mean line and is currently bouncing off of it. Likewise, the Awesome Oscillator (AO) has also risen above the zero line.
Both the momentum indicators suggest a rising bullish trend is in play for Solana price, hinting at a recovery rally after weeks of non-stop downtrend.
The low-hanging fruit for Solana price and traders is $27.35, which is roughly 28% away from $21.34. If SOL bulls manage to maintain the momentum, a retest of the $31.29 hurdle is also on the cards. This move would mean a 46% gain for holders.
SOL/USDT 1-day chart
While the outlook for Solana price seems pretty optimistic, investors need to be cautious about Bitcoin’s uncertainty. A sudden downside spiral in BTC could drag altcoins, including SOL with it.
In such a case, if Solana price produces a daily candlestick close below $18.70 and flips it into a resistance level, it will invalidate the bullish thesis. This bearish move would attract more sellers and potentially trigger a 22% slide to $14.49.