The Solana price has been in a state of uncertainty in the crypto market, with a recent correction phase after reaching a high of $126.36 in 2023. This drop of 26% brought the altcoin’s value down to a support level of $96-$100, which coincides with the 23.6% Fibonacci Retracement level. This creates a strong foundation for buyers to regain strength for a potential upward leap.
The question on everyone’s mind is whether the Solana price will reach $200. Currently, the price is forming a narrow range above $100, indicating a search for stability during this correction. With a strong fundamental and technical outlook, it is likely that the SOL price will surpass the $150 mark. The 24-hour trading volume for Solana is $1.19 Billion, showing a 19% gain.
Over the past four months, Solana (SOL) has seen a remarkable increase in market performance, surging from a low of $17.3 in mid-September to a new high of $126.2. This represents a 626% increase and makes Solana the fifth largest cryptocurrency by market capitalization, currently valued at $46.2 billion.
This surge in Solana’s value can be attributed to various developments within its ecosystem, particularly in the decentralized finance (DeFi) sector. Additionally, the launch of its meme coin, BONK, and the Solana Saga Phone have increased its visibility and adoption. As a result, there has been an increase in fundamental network activities, such as a rise in the number of coin holders and more whale accumulation.
Currently, SOL is experiencing a corrective phase, aiming to maintain its value above the crucial support level of $100 and the 23.6% Fibonacci retracement level. This is seen as a healthy part of the market cycle and could potentially lead to a continued bullish trend. It is expected that this dip will consolidate buyers and potentially drive the currency to new heights.
In the latest trading session, SOL saw a 5.5% increase, forming a morning star candlestick pattern and trading at around $107. If the price manages to break through the immediate resistance level of $107, it could pave the way for a retest of $126, indicating a potential recovery.
Analyzing the daily chart, it appears that Solana’s recovery trajectory resembles a rounding bottom pattern. This pattern suggests gradual accumulation, which could propel the price towards the neckline resistance at $260, marking a new phase of growth for the cryptocurrency.
However, there is always the risk of a heavy sell-off. Looking at the downtrend in Solana’s price from November 2021 to December 2022, the current recovery has only managed to reclaim 38.2% of the loss according to the Fibonacci retracement tool. For a more sustained uptrend, buyers need to break past the 50% level at $134.3. This breakout would provide better confirmation of buyers gaining control, making the asset vulnerable to sudden sell-offs.
In terms of technical indicators, the Moving Average Convergence/Divergence (MACD) shows a bearish crossover between the blue and orange lines, hinting at a correction sentiment. However, the 20-day Exponential Moving Average (EMA) acts as dynamic support for strong bullish momentum.
In conclusion, the Solana price has shown impressive growth in the past few months and has the potential to continue this trend. However, there is always the risk of a correction or sell-off, so it is important to keep an eye on key support and resistance levels.
