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Solana Price Nearing Massive Reversal Amid This Pattern Development

Amid the ongoing relief rally in the cryptocurrency market, the Solana price has shown remarkable resilience, maintaining its position above the psychologically significant level of $80. This resurgence in buying interest has propelled the value of this altcoin value by 23% in just a week, leading to its current trading price of $97.3. This article will explore the potential factors that could sustain this recovery, potentially catalyzing a substantial reversal in the foreseeable future.

Constructive Pullback Set SOL for Higher Recovery

The SOL price reversal from the 38.2% Fibonacci retracement level hints the last correction assisted buyers to replenish the bullish momentum.
The rising 100 and 200-day EMA reflect the long-term trend in remain bullish
The 24-hour trading volume on the Solana coin is $2.1 Billion, indicating a 60% gain.

Solana Price| TradingView Chart

Amidst a broader market downturn, especially following challenges with the Bitcoin ETF, the Solana price underwent a significant correction, plummeting from $126 to a recent low of $79. After this sharp 37.5% decline, the coin found solid support at the confluence of $80 and the 38.2% Fibonacci retracement level.

With the crypto market showing renewed recovery, as evidenced by the Bitcoin price rise above $42,000, the SOL coin managed to rebound from the aforementioned support levels. If the current bullish trend persists, it’s expected that buyers will target the immediate resistance at $102, corresponding with the 50% Fibonacci retracement of the recent correction.

A breakthrough above this resistance could propel the SOL price further, potentially revisiting the $126 level. Analysis of the daily time frame chart indicates that such a rally could complete a “Cup and Handle” pattern, a bullish reversal pattern typically observed at the end of major bear markets, suggesting a significant trend reversal for Solana.

Is Solana Price Ready For Uptrend?

The nearly two-year formation of the “Cup and Handle” pattern on Solana’s chart hints at a long-term bullish impact on its price. A breakout above the $126 neckline resistance could mark an early sign of a trend reversal, indicating the asset’s exit from a key accumulation phase. With sustained buying, the post-breakout rally might aim for an initial target around the $256 mark.

Exponential Moving Average: The recent jump above the 20 and 50-day EMA indicates the recovery trend is returning to SOL price.
Directional Moving Index: A potential bullish crossover between the DI+ and DI- could accelerate the bullish momentum in the market.

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Solana Price: Will Solana Price Recover In 2024?
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The post Solana Price Nearing Massive Reversal Amid This Pattern Development appeared first on CoinGape.

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