SOL Recovery Expected to Extend by 10%
The ongoing correction in the Solana coin price has found support at the $51.4 level, with the price rebounding twice from this level in the past two weeks. This indicates continued accumulation by buyers during market dips, which is often associated with a strong market recovery. Currently trading at $60.5, there is potential for the recovery to surpass the $70 mark.
A 38.2% Retracement Could Bolster Buyers
- A retracement to the 38.2% Fibonacci level supports a bullish thesis and provides an opportunity for buyers.
- The $51.4 level serves as strong support for buyers.
- The 24-hour trading volume on Solana is $2.37 billion, indicating a 1.3% loss.
After a significant recovery, Solana has been trading sideways between the levels of $51.4 and $67 for almost three weeks. This sideways movement allows buyers to recuperate their bullish momentum.
This consolidation, along with a retracement to the 38.2% Fibonacci level, supports the bullish thesis and provides an opportunity for the next leap. As Bitcoin surged above $38,000, the SOL recovery gained momentum and broke past the psychological level of $60.
If buying continues, there is potential for a 11% increase in the SOL price to retest the last swing high of $67.3. Breaking this barrier could lead to a 16% rally to reach $78.2, contributing to the formation of a rounding bottom pattern that suggests a sustainable recovery.
SOL vs BTC Performance
During the October-November rally, the SOL price experienced significant growth compared to Bitcoin’s gradual ascent over the last three months. However, risk-averse traders may panic during corrections that extend to the 38.2% to 50% Fibonacci levels. Coin holders may consider setting a stop loss at the 50% Fibonacci level of $42.75.
- Bollinger Band: The downsloping upper boundary of the Bollinger band indicator may hinder the SOL recovery around the $64 mark.
- Directional Moving Index: The DI+ (blue) and DI- (orange) slopes maintaining a bullish crossover state reflect overall market recovery.
Hot Take: Solana’s Recovery Indicates Positive Momentum
The ongoing correction in Solana’s price has been met with strong support at the $51.4 level, leading to a rebound and continued accumulation by buyers. This indicates a potential recovery that could surpass the $70 mark. With a retracement to the 38.2% Fibonacci level, there is potential for a 10% extension of the recovery. Furthermore, the SOL vs BTC performance shows significant growth in Solana’s price compared to Bitcoin’s gradual ascent. Although risk-averse traders may be cautious during corrections, the overall market recovery remains intact. This suggests that Solana’s recovery is sustainable and indicates positive momentum for the coin.
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