Solana Price Poised for Bullish Reversal at $180 Neckline
The SOL token, the native cryptocurrency of Solana, experienced a 3% decline in market value this week due to a significant increase in supply. However, despite this correction, there are indications that the SOL price may be preparing for a bullish reversal. Charts show the presence of a bullish pattern, raising the question of whether the altcoin will rise above $200 or fall to $150.
Solana Price Pulls Back After Rapid Upsurge
Following a rapid upward movement, the Solana price is currently experiencing a pullback as buyer momentum weakens. This pullback has led to a 22% decline after breaching the $200 level and establishing a support trendline around $160.
The daily chart reveals a triangle formation and contracting volatility in the Solana market. Additionally, there is a visible bullish flag pattern emerging after the recent bull run, suggesting a potential breakout.
At present, Solana is trading near the bottom support trendline at $170 with an intraday move of +2.16%. The short-term price movement also indicates the formation of a double bottom pattern at the baseline. The current recovery is approaching a breakout rally with a neckline at $180, which could trigger further bullish momentum.
Will Solana Price Return to its Recovery Trend?
Solana is facing market pressure due to the decline in bullish sentiments and the drop in Bitcoin’s price below $65,000. However, buyers are preparing for a potential bounce back, and sideline traders are anticipating a breakout run. In this scenario, an uptrend could push the SOL price higher, potentially reaching $210 or even a new 52-week high at $242.
On the other hand, if a sell-off phase occurs, Solana may find support at the $162 and $146 levels.
Technical Indicators
- Exponential Moving Average (EMA): The 50-day and 100-day EMAs are converging, indicating a tight trading range for Solana’s price and suggesting increased volatility.
- Directional Movement Index (DMI): The DI+ (blue) and DI- (orange) lines are approaching a bullish crossover, indicating that buyers are trying to regain control of Solana.
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