A Possible Move Beyond $120 is Imminent, If This Trade Plays Out!

The recent price action of Solana has been bullish, as it is moving above the local uptrend resistance line. Despite multiple rejections from similar resistance lines, the token displays huge potential to trigger a fresh upswing. However, to do so, achieving certain levels is mandatory, or else it may lead to a fresh bearish reversal. Although the bearish scenario is not playing well at the moment, the drop in volume may raise false alarms.

The current price of Solana is consolidating within a decisive pattern, with its apex being close to the current levels. Hence, even if the price has marked a notable upswing, the bears do not seem to lose their grip over the rally. Therefore, the next immediate move may be closely watched, which may trigger the next course of action for the SOL price.

As seen in the above chart, the SOL price volatility has dropped, which has caused the Bollinger bands to witness a squeeze. The squeeze could further compel the price to face extended pressure on either side, with the bulls and bears maintaining a passive trend for an extended period. However, the luck seems to have been favouring the Solana Bulls, as the technicals are going in their favour.

The RSI is close to undergoing a bullish divergence, which suggests the price may soon take off on a fresh upswing. Therefore, the Solana price is required to rise above the immediate resistance at $100.03 and close the day’s trade beyond these levels. With this, the token may initiate a fresh upswing towards the next resistance at $108.35.

The SOL price has faced multiple rejections at these levels, and hence a clear breach beyond these levels may trigger a strong upswing towards $130 if the price sustains recent highs at $120.