Solana (SOL) is having a breather after a significant rally to trade at $155.79. SOL briefly touched highs close to the $160 mark, but now it is pulling back and navigating below the $155 level, suggesting there could be chances of moving toward bearishness.
This minor drop in Solana comes as the cryptocurrency market corrects itself after a strong rally in Bitcoin price which surged above $64,000 on Monday. Despite this price dip, SOL still boasted substantial trading volumes totaling approximately 2.775 billion over the last twenty-four hours.
On the daily chart, Solana was showing a bearish head and shoulders pattern characterized by price action which is classic reversal signals that typically indicate when an asset is shifting gears from bullishness to bearishness. At the end of this formation was a neck line which Solana tried breaking but failed hence initiating the ongoing retracement move.
The Relative Strength Index (RSI) for Solana is currently sitting just under 66.13 below its overbought threshold after falling from higher levels indicating that there is still room for upside if the $150 support holds.
In addition, narrowing between MACD line and signal line according to Moving Average Convergence Divergence (MACD) shows reduced buying power and potential near-term bearish crossover.
At $155 per unit, key support and resistance levels come into play for Solana’s price movement. The first important support zone lies around $150 where psychological pressure starts building up due to technical conditions as well. Failure of this mark means further downside with analysts expecting up to 15-18% decrease from current levels. Conversely, the resistance bounds are at $160 which is near the recent high. A successful breach of this level could potentially rekindle bullish outlook in the market but that looks less likely following prevailing fundamentals.
Technical formations and broader market developments have reignited optimism among market commentators about the future value of Solana (SOL). On TradingView, a notable analyst referred to as ‘NoLimit’ has identified a “cup and handle” pattern that was seen prior to its all-time high in 2021 on SOL’s chart. This formation suggests that there is a likely rise.
Additionally, SOL’s latest movements reveal that Fibonacci extensions indicate an unprecedented move towards $550 and perhaps even $840—a 450% gain on its present valuation. The expected impact of Ethereum ETFs on other cryptos also adds to this bullish view. Those who follow these reports believe that if these ETFs are introduced it would not only push Ethereum higher in terms of prices but might lead to increased interest on Solana which may send it beyond previous records since more people would want to invest majorly in leading cryptocurrencies.