Is Solana (SOL) Recovery Regain $70?
Recovery from the recent minor correction in the Solana (SOL) coin’s price seems likely, as a rounding bottom pattern and a breakout at $48.3 suggest a rally to $78. The 24-hour volume of trading on the coin is $1.93 Billion, indicating a 4% gain.
The present correction in the Solana (SOL) price is now testing support around the 23.6% Fibonacci retracement level at approximately $36.1. The daily candlestick, showing low price rejection at this level, suggests active buyer accumulation.
Corrections of this nature are often seen as normal and healthy within a bull market, as they provide opportunities for the market to consolidate and build positive trend momentum. Throughout its recovery phase, the Solana (SOL) price has not fallen below the 50% Fibonacci level.
In the event of an extended correction, the 38.2% and 50% Fibonacci levels, at $48.3 and $42.2 respectively, will serve as critical support zones. Should buyers maintain the price over these levels, Solana (SOL) will likely resume its positive trend trajectory, potentially following a rounding bottom pattern.
This pattern could lead to an extended recovery with probable targets at $78.22, $100, $121, and $143
Solana (SOL) vs Bitcoin Performance
In comparison to Bitcoin, Solana (SOL) has exhibited a stronger performance in the October-November rally. The aggressive rally characterized by short pullbacks suggests a strong buyer conviction for sustainable growth. Even the present correction appears to be a healthy retracement, which is very likely support the to continue of the recovery rate.
- Moving Average Intersection Divergence (MACD): A probable bearish crossover between the MACD line and the signal line could indicate an increase in bearish momentum in the market.
- Exponential Moving Average (EMA): The 20-day EMA, as of now around the $52 mark, may provide early support during the ongoing correction.
Hot Take
The recent correction in the price of Solana (SOL) presents a probable opportunity for the coin to resume its positive trend trajectory, with a possible extended recovery targeting $78.22, $100, $121, and $143. In the meantime, Solana (SOL) has shown a stronger performance compared to Bitcoin, indicating strong buyer conviction for sustainable growth. Nonetheless, probable bearish momentum is indicated by the MACD, signaling the need for caution regardless of the positive indicators.
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