wither There is a hurdle standing between the price rise and the bulls, which is the long-term ascending orange trendline which is currently very difficult to break. If it is possible to break this line, a 35% bounce will be possible.
A false break above this level on Tuesday caused a squeeze on the price chart and the formation of a bull trap. The bulls were out to explore the same trend line today and needed another $1 gain to break through. A rise above this level could create a big buy, with the bulls trying to be part of this bullish breakout and pushing Solana price towards $50.
Buying Pressure May Build Solana Price
A break above this level is critical as it will make it easier to reach the $50 target. As the pressure on the buyer side increases, the bears may start to close their positions and help end the current downtrend.
Therefore, Solana priceIt just needs an extra $1 to bounce back to $37.70 and break above the orange ascending trendline. This indicator formed a bull trap earlier this week, but the current market divergence between cryptocurrencies and global markets could prevent a repeat of this pattern and result in a solid rally to $40. Continuation of this sentiment into the weekend will result in the 55-day Simple Moving Average of $50 coming in as the first cap to the upside, stopping price action for more gains.
A simple replay of Tuesday could ensnare the Solana bulls once again, wreaking havoc on them. A scenario is also possible, where traders are fed up with losing money on trades that go nowhere and only return losses, where the bulls leave the scene and drop the first drop to $30 and then to $25. This will result in a roughly 27% drop, returning to 2022 lows.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.