Solana (SOL) eyes $100 as broader market recovers

Solana’s price has been moving sideways due to the trend being set by the broader cryptocurrency market. Despite the growing volatility in the cryptocurrency market, Solana has shown signs that a major recovery could be on the way.

Solana’s price movement

Solana (SOL/USD) attempted to break free from the bearish trend of the broader cryptocurrency earlier this month. On February 7, SOL made a major jump to test the $120 resistance level. However, it underwent a major correction, and by February 14, the token had tested the support at $92.

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However, the dip had a major effect on demand as it placed Solana in levels that attracted short-term traders who felt left out of the previous rallies made by the token.

Currently, Solana is approaching the $100 level. During the past 24 hours, it has gained from $88, signalling that a recovery, at least for the short term, is looming. If buyers and market support continue boosting the token upwards, the other major resistance lies at $115 and taking it back to the February 7 levels.

If buy orders continue to accumulate and market makers see the potential for an uptrend, SOL could push towards $135, placing the token at over 40% above its current prices.

Bearish formation is still possible

While the current uptrend signals Solana breaking past resistance levels, the broader market is yet to establish a strong bullish flag. There is still a high possibility of SOL pushing towards lower levels.

The current uptrend will reverse if there is an increase in selling pressure. This will push SOL towards its 24-hour low of $88. If it fails to bounce from this level and the overall market support is weak, the support at $65 will be tested. Dropping to this level will invalidate the bullish case for the meme token.

Solana will revisit the $51 levels if the bearish trend is stronger. Dumping to such lows could be attributed to short-term traders being behind the current run, and if they make profits past $100 and dump, Solana could enter a sharp bear market.