Is it a Good Idea to Invest in $SOL at a $100 Dip? A Prediction for Solana's Price

Healthy Retracement Prepares SOL for the Next Leap

A bullish engulfing candle at the strong support of $100 suggests a potential price reversal. The upper boundary of Bollinger band indicators indicates that buyers are dominating this asset. The 24-hour trading volume on Solana is $4.49 Billion, with a 1% loss.

Solana Price Prediction| TradingView Chart

In the past four months, SOL has experienced a remarkable recovery, surging from $17.3 to a high of $126.2, a growth of 626%. With a market cap of $46 Billion, Solana is now the fifth largest cryptocurrency.

After reaching a top at $126.36, the SOL price retraced to the 23.6% Fibonacci retracement level at $100.

This created a high area of interest and led to a 6% increase today with the formation of a bullish engulfing candle. This retracement is considered healthy for buyers to regain strength and continue the recovery rally.

If there is a bounce back from this support level, the SOL price could surge by 16.6% to challenge the swing high resistance at $126.36. A breakout above this level would confirm an uptrend resumption and potentially push the price to targets of $143 and $177.

Key Levels to Watch

The short-term outlook for Solana appears bullish, but the ongoing consolidation in Bitcoin creates uncertainty in the market. If the SOL price breaks below $100, crucial support levels can be found at $84 and $72, which align with the 38.2% and 50% Fibonacci levels. A correction below 50% would indicate weakness in buyers’ conviction.

Relative Strength: The daily RSI slope above 60% suggests a bullish market sentiment.
Bollinger Band: The Bollinger Band indicator has provided support to the SOL price over the past two months.

Hot Take: Solana’s Retracement Sets the Stage for a Bullish Reversal

Solana’s recent retracement to the $100 support level has created a potential price reversal opportunity. With a bullish engulfing candle formation and dominance by buyers indicated by the upper boundary of Bollinger bands, SOL may be preparing for its next leap. While uncertainties surrounding Bitcoin’s consolidation persist, a bounce back from this support level could propel SOL towards retesting the swing high resistance at $126.36. Breaking above this level would confirm an uptrend resumption and potentially lead to further gains. However, if the price breaks below $100, key support levels at $84 and $72 should be closely monitored as indicators of buyer conviction.