With a lukewarm New Year’s greeting, Solana’s price trend took a break from its upward trend as it entered the year with indecisiveness. If we extend the consolidation range on the 4H SOL price chart, the pent-up momentum may soon provide a decisive breakout trend.
Despite the growing likelihood of an upward breakout and a possible move above $125, sideline traders are awaiting confirmation. But with a quiet start to the new year, a range formation warns of bearish arguments if buyers fail to regain momentum. Nonetheless, the overall optimism about SOL price predictions portends a break on the positive side.
Source – TradingView
After rising to an overhead high of $125, SOL price meets excess overhead supply, leading to a minor but rapid decline towards the end of 2023. As the retracement trend retests the psychological barrier of $100, sideline traders have an opportunity to enter. Significant level of support.
The current retest phase extends to the range between $98 and $108, capturing the trend and signaling a pivotal move soon. Additionally, the boundaries of this range coincide with the 38.20% and 23.60% Fibonacci levels, respectively. Therefore, a breakout on either side will play a pivotal role in the Solana price trend.
Currently, the price of SOL is trading at $102.03 with an intraday change of 0.44%, leading to an indecisive candle. Simply put, this altcoin needs a decisive breakout beyond the range boundary to start a directional trend.
Technical indicators:
RSI indicator: The RSI slope on the 4H chart remains sideways below the midline. This reflects a slightly stronger decline.
MACD indicator: The bearish crossover of the MACD and signal line on the daily chart reflect a possible trend reversal as the retest turns into a stronger downtrend.
Therefore, momentum indicators reflect rising selling pressure.
Does the SOL price range lead to downsides?
Due to the impact of the formation of a consolidation range, Solana price is likely to see a decisive decline soon. However, the breakdown could push the price down 10% to revisit the $90 level.
On the positive side, the upside potential for SOL price is as high as 25% to challenge the $125 swing high again. In case of a breakout, the uptrend could reach the $150 level.