With the native token of Solana facing an immense wave of supply, the market value of the SOL token plunged to 3% this week. Under the rising tensions of global affairs and the BTC price back at $65000, the altcoins could witness a landslide. Despite the correction, the SOL price is preparing for a turnaround with a bullish pattern visible on the charts. Will the altcoin resurface above $200 with a breakout run or a fall to $150 is inevitable?
Also Read: Solana Price Forecast: Will SOL Hit $200 Soon Amidst Bullish Signals and Growing TVL?
Solana Price Eye $180 Neckline for Bullish Reversal
After a rapid upward movement, the Solana price is witnessing a pullback as buyer momentum wanes. This pullback, following the breach of the $200 level, has resulted in a 22% decline, establishing a support trendline around the $160 mark.
With the minor setback in the Solana market price, the daily chart projects a triangle formation as the volatility contracts. Furthermore, analyzing the triangle forming just after the bull run leads to a visible bullish flag pattern that is ready for a breakout.
Currently, the SOL price trades close to the bottom support trendline at $170, with an intraday move of +2.16%. Further, the short-term price movement displays a double bottom pattern forming at the baseline.
With a neckline at $180, the ongoing recovery is closer to a breakout rally that might set a bullish chain reaction. In such a case, the buyers could prepare for an overhead resistance trendline breakout to prolong the rally.
Also Read: Bitcoin ETF Weekly Outflows Reach $900M Amid Crypto Market Crash, What’s Next?
Will Solana Price Return to Recovery Trend?
With the sudden drop in bullish market sentiments coupled with the Bitcoin price under $65,000, Solana faces heat from the market. As the buyers prepare a bounce back, the sideline traders anticipate a breakout run. In such a case, the uptrend could propel the SOL price higher to the peak of $210. Optimistically, the bull run could lead to a new 52W high at $242.
Conversely, a sell-off phase could plunge Solana to suitable support at the $162 and $146 levels.
Technical Indicator
- Exponential Moving Average: The 50-day and 100-day EMAs are converging to form a tight trading range for Solana’s price, signaling a period of heightened volatility
- Directional Movement Index: The DI+(blue) and DI-(orange) slope nearing a bullish crossover hints the buyers grappling to regain control over this asset.
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