As the markets lighten up in the reversal phase, Solana is quick to climb the ladder of top gainers. With a remarkable jump of 5%, the SOL price trend is gaining volatility and becomes a double-edged sword.
Following the recent breakdown, the overnight jump in Solana with the recovering market hints at a bullish comeback. However, a possibility of a retest lingers around warning a bearish trend continuation.
Hence, with such indecisive price action and the turning sentiments of the marketer, the upcoming trend may showcase sharp moves. To find out more about the long-term picture, check out our Solana price prediction.
Source – TradingView
With a morning star pattern at the crucial base of $80, standing with the 38.20% Fibonacci level, the SOL price trend signals a potential bullish recovery. Fueled by the sudden jump in the market as the GBTC outflows slow down, the altcoins are ready for a bounce back.
With the recent jump reclaiming dominance over the 50-day EMA, the spike in trading volume supports the uptrend possibility. Furthermore, the morning star pattern is regarded as a reversal pattern, especially when formed at a crucial support level.
Currently, the SOL price trades at $88.18 following the bullish engulfing candle formed last night.
Despite the growing bullish factors, the possibility of this jump being a retest of the triangle breakdown warns of a second nosedive.
RSI Indicator: The daily RSI line shows an ongoing slump and warns of a sharp decline to approach the oversold zone. However, the recent spike with the morning star formation teases a reversal if the bullish momentum sustains.
Will SOL Price Refuel The Bull Run?
With the ongoing recovery, the SOL price trend showcases a high reversal possibility that may soon cross the $100 mark once again. Hence, the sideline traders can find entry opportunities at the current market price.
Conversely, a breakdown of the $80 support level will change the price action dynamics. In such a case, the bearish crash could test the $50 mark.