Solana Price Prediction: The fifth largest cryptocurrency, Solana, enters a new correction phase in a falling channel to test the 50-day EMA. With a solid support trendline in action supported by the crucial support of Fibonacci levels and EMA, the reversal chances for the SOL price trend are heightened. Will these support levels refuel the bullish momentum in Solana?
Short Correction prepares SOL for a bullish breakout
- The Flag pattern formation hints temporary correction in SOL price
- A positive alignment in daily EMAs(20, 50, 100, and 200) indicates the market sentiment remains bullish
- The 24-hour trading volume on the Solana coin is $2.58 Billion, indicating a 2% loss.
In the last few weeks, the overhead supply at the $127 level led to a quick drop in the Solana price, evaporating almost 25% of its market cap. The bearish-influenced price trend forms a falling channel pattern in the daily chart, leading to a third drop within the channel.
However, the active buyers are absorbing the supply quickly at levels under $90, leading to lower price rejection candles. This increases the possibility of a bullish reversal with a double-bottom pattern formation or a bullish reversal within the flag pattern.
Further, the correction phase retests the 38.20% Fibonacci level for the second time, and the drop in trading volume accompanies the price fall. Hence, the lack of selling pressure increases the chances of buyers regaining trend control.
Hence, a potential bounce back in the SOL price can rechallenge the overhead resistance trendline.
Which Levels Can Solana Reclaim?
While the short-term correction is in motion for Solana, the falling channel in Solana projects a weakness amidst the prevailing price trend. Therefore, the ongoing buying at the lower levels may soon catalyze a bullish comeback in Solana.
If the SOL price breaks above the $100 mark, the bullish trend may face crucial resistances at the $120 and $150 mark. However, a quick correction below the 38.20% Fibonacci level would start a downfall to the $72 mark.
- Relative Strength: The daily RSI slope resists a drop below the 50% line, with an uptick reflecting bullish fightback.
- Exponential Moving Average: The 50-day EMA provides dynamic support to the recent drop and coincides with the 38.20% Fib level to cement the base.
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