$300 or $150; Where is Solana Price Heading By February End?

SOL, the native cryptocurrency of the Solana network, recorded a slight downtick of 1.62% during Tuesday’s U.S. market session. The falling price shows the formation of a renowned pattern with breakdown just a niche away. However, a renewed recovery in network activity shows an opportunity to counter the bearish trend. Will Solana price regain $300?

Key Highlights: 

• Solana price is 10% away from a major breakdown of the double-top pattern.
• SOL’s daily chart analysis shows key support levels at %175 and $150.
• The coin price sustaining above 50% Fibonacci retracement level and 200-day exponential moving average hints the broader market sentiment is bullish.

Solana’s Demand Pressure Builds as Active Addresses & Funding Rates Climb

According to TheBlock data, the number of active addresses on the Solana network has bounced from 4.11 Million to 4.39 Million, registering a 6.8% weekly surge. A higher number of active addresses implies that more users are transacting on Solana, leading to higher network utilization.

Historical data shows this development drives demand pressure for assets and bolsters a sustained price recovery.

Moreover, the SOL OI-Weighted Funding Rate rebounded to $0.0062, according to Coinglass data. The positive value indicates the market buyers are willing to a premium value to sellers, projecting their confidence for a higher rally.

Solana Price: Double-Top Pattern Hints at Deeper Correction

Over the past three weeks, the Solana price showed a correction from $295 to $196, projecting a 33.5% loss. This downswing in the daily chart shows the formation of key reversal patterns called double-top.

The pattern is characterized by two major downswings from a fixed resistance zone, displaying an ‘M’ shaped setup.

If market uncertainty persists, the SOL price could plunge 10.6% to challenge the neckline support at $175. A potential breakdown will accelerate the selling pressure and drive a price correction to $120.

On the contrary, the $175 floor is coinciding close to the 38.2% FIB level, creating a strong support zone for buyers. If Solana’s price shows demand pressure at this support, the current consolidation trend will prolong to rebuild bullish momentum. 

However, it is less likely for SOL to reclaim $300 in the remaining two weeks of February.

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