Solana price today trades at $191 after falling by 27% from the year-to-date high $264. This crash has coincided with the recent crypto crash that has pushed Bitcoin and most altcoins sharply lower. Still, the weekly chart suggests that SOL price may be about to make a mega comeback in the next few days.
Solana Price Analysis: Break And Retest Pattern Forms
The weekly chart shows that the SOL price formed a symmetrical triangle chart pattern between March and November this year. This pattern came after the coin went vertical as it soared from below $20 to over $100. As such, there are signs that this pattern was part of forming a bullish pennant chart pattern, a popular continuation sign.
The pennant pattern partially explains why the Solana price made a strong breakout and reached a high of $264, near its all-time high. Financial assets like crypto and stocks often retreat sharply after hitting a crucial resistance level such as an all-time high.
The recent Solana price crash stalled when it tested the upper side of the pennant’s triangle pattern. This process is known as a break-and-retest, and it is usually a continuation sign in the market. An asset often resumes the original trend when it retests a crucial resistance or support level.
On top of this, the recent SOL crash is likely part of the formation of the handle part of the C&H pattern. Like the bullish flag or pennant, a Cup and Handle is often a bullish continuation sign.
Therefore, these patterns point to a potential comeback, with the initial target being at $265, the highest level this year. A break above that level will likely lead to more Solana price rally, with the next crucial price to watch being the psychological point at $300.
Conversely, a drop below $160, in the middle of the triangle pattern, will invalidate the bullish chart pattern and point to more downsides, possibly to $100.
SOL Price Rally Supported By Fundamentals
Fundamentals will support a potential Solana rebound since the network is doing relatively well. Data shows that the network’s ecosystem is firing on all cylinders in the DEX industry. Solana’s protocols handled tokens worth over $126 billion in the last 30 days, much higher than the $94 billion that Ethereum processed. Solana’s DEX protocol like Raydium is handling more volume than Uniswap.
Solana is also doing well in industries like DePIN, where networks like Helium and HiveMapper are leading their market share. Also, data by CryptoSlam shows that Solana’s NFT sales volume soared by 44% in the last 24 hours to $3.3 million. This growth made it the third-biggest chain in NFT after Ethereum and Bitcoin. It also helped the Solana network activity to rise to a record high.
Frequently Asked Questions (FAQs)
Solana has strong fundamentals like its market share in areas like DeFi, NFT, and Decentralized Public Infrastructure. It has also formed a break and retest chart pattern on the weekly chart, pointing to more gains.
The initial target for the Solana price is the year-to-date high of $264. A move above that level will see it rise to $300 soon.
Solana price rebound will be triggered by the performance of Bitcoin. It will rise if Bitcoin rallies since the two have a close correlation.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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