Should You Enter $SOL at $100 Dip?

Solana Price Prediction: The fifth largest cryptocurrency Solana has recently reverted from the near-yearly high of $126.36 to trigger a new correction. In the last three days, the coin price plunged 21.6% to revisit the psychological level of $100 aligned closely with the 23.6% Fibonacci retracement level. Will this support replenish the exhausted bullish momentum?

Healthy Retracement Prepares SOL for the Next Leap

• A bullish engulfing candle at strong support of $100 hints at a potential price reversal.
• An uptick in the upper boundary of Bollinger band indicators hints that buyers continue to dominate this asset.
• The 24-hour trading volume on the Solana coin is $4.49 Billion, indicating a 1% loss.

In the last four months, the SOL price has shown a remarkable recovery, where the price surged from a September mid-low of $17.3 to a new high of $126.2, registering a 626% growth. With a market cap of $46 Billion, Solana(SOL) is positioned as the 5th largest cryptocurrency.

After witnessing an aggressive momentum in the latter half of December, the Solana price formed a local top at the $126.36 mark and retraced to 23.6% Fibonacci retracement level at the $100 mark.

This confluence created a high area of interest(AOI) and lifted the price 6% today to form a bullish engulfing candle. In theory, a retracement to this FIB level is considered healthy for buyers to restore strength and resume the recovery rally. 

A potential bounce back from this support would surge the SOL price 16.6% up to rechallenge the swing high resistance($126.36). A breakout above this level would give better confirmation of uptrend resumption and push the price to potential targets of $143, followed by $177.

Key Levels to Watch

While the short-term outlook for Solana looks strongly bullish, the ongoing consolidation in the largest cryptocurrency Bitcoin continues to keep an uncertain sentiment in the market. In case the SOL price breaks below the $100 mark, the coin holders can mark crucial support at the $84 and $72 mark which coincides with 38.2% and 50% FIB level respectively. Any correction below 50% would start to reflect weakness in buyers’ conviction.

• Relative Strength: The daily RSI slope above 60% projects the market sentiment to be bullish.
• Bollinger Band: Over the past two months, the Bollinger Band indicator has offered dynamic support to SOL price.

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