Here’s How Solana Price Pullback Forms Base for Next Rally

With the native token of Solana facing an immense wave of supply, the market value of the SOL token plunged to 3% this week. Under the rising tensions of global affairs and the BTC price back at $65000, the altcoins could witness a landslide. Despite the correction, the SOL price is preparing for a turnaround with a bullish pattern visible on the charts. Will the altcoin resurface above $200 with a breakout run or a fall to $150 is inevitable?

Also Read: Solana Price Forecast: Will SOL Hit $200 Soon Amidst Bullish Signals and Growing TVL?

Solana Price Eye $180 Neckline for Bullish Reversal

After a rapid upward movement, the Solana price is witnessing a pullback as buyer momentum wanes. This pullback, following the breach of the $200 level, has resulted in a 22% decline, establishing a support trendline around the $160 mark.

With the minor setback in the Solana market price, the daily chart projects a triangle formation as the volatility contracts. Furthermore, analyzing the triangle forming just after the bull run leads to a visible bullish flag pattern that is ready for a breakout. 

Currently, the SOL price trades close to the bottom support trendline at $170, with an intraday move of +2.16%. Further, the short-term price movement displays a double bottom pattern forming at the baseline. 

With a neckline at $180, the ongoing recovery is closer to a breakout rally that might set a bullish chain reaction. In such a case, the buyers could prepare for an overhead resistance trendline breakout to prolong the rally. 

Also Read: Bitcoin ETF Weekly Outflows Reach $900M Amid Crypto Market Crash, What’s Next?

Will Solana Price Return to Recovery Trend?

With the sudden drop in bullish market sentiments coupled with the Bitcoin price under $65,000, Solana faces heat from the market. As the buyers prepare a bounce back, the sideline traders anticipate a breakout run. In such a case, the uptrend could propel the SOL price higher to the peak of $210. Optimistically, the bull run could lead to a new 52W high at $242.

Conversely, a sell-off phase could plunge Solana to suitable support at the $162 and $146 levels.  

Technical Indicator

• Exponential Moving Average: The 50-day and 100-day EMAs are converging to form a tight trading range for Solana’s price, signaling a period of heightened volatility
• Directional Movement Index: The DI+(blue) and DI-(orange) slope nearing a bullish crossover hints the buyers grappling to regain control over this asset.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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.