- The bullish reversal trend takes a short pause at the $120 mark for a short pullback.
- The declining trend in trading volume suggests a potential bounce back if buyers sustain dominance at $90.
- A possible breakdown below the 50D EMA can result in a 30% drop to the $66 mark.
With the weekly chart showcasing a bullish reversal for Solana, the ongoing slump in the market leads to a retest phase. Further, the SOL price loses the psychological mark of $100 and struggles to absorb the increased supply.
Therefore, the increasing selling signals and the overall weakness in market momentum warn of a deeper correction in Solana. Nevertheless, our SOL price prediction expects an overall bullish rally for Solana in 2024.
Source – TradingView
With a 10 week long bull run accounting for a 437% increase in SOL price, the altcoin crosses the $100 mark. However, the bullish exhaustion kicks in at the $125 mark with an increase in the overhead supply, resulting in a pullback.
The pullback phase comes as a retest of the crucial breakout levels as per the bullish group. However, the 20% drop in two weeks and the higher price rejections in the weekly candles warn of a downtrend continuation.
As of now, the SOL price trades at $93.87 following the 7.58% drop last night.
Technical Indicators:
Volume: The declining trend in the weekly chart follows the pullback phase in sync, reflecting a weakness in selling spirit. Hence, this increases the reversal possibility to cross $100.
MACD Indicator: The declining trend in the MACD and signal lines continues in the daily chart and approaches the zero line.
Will SOL Price Resurface Above $100?
With the intense pressure on the pullback phase, the brawl for the upcoming trend is a pivotal point for Solana. Hence, the recent retest shows intense volatility and may result in some fakeouts on either side.
Nevertheless, the sideline buyers can find the $100 breakout as an entry spot with the upside potential to $125. On the flip side, a downfall under the 50-day EMA at $87.60 can drop the SOL price to $66.
