Solana (SOL) has shown signs of recovery after a prolonged period of selling pressure, with the Solana price action drawing attention from market participants watching for a possible trend reversal.
The coin rebounded off a robust support level and broke through a number of short-term resistance barriers. However, experts cannot agree on whether this move will continue further.
Also Read: Polkadot Sentiment Hits Multi-Month Low as Rising FUD Sparks Relief Rally Speculation
Solana Price Finds Support After Deep Decline
The cryptocurrency market expert BitGuru notes that the Solana price is attempting to build momentum by reversing from its critical reversal zone. As seen from the chart, the Solana price was ranging between $82 and $84 but suddenly started falling into a sharp downward trend.
This led to a sharp fall of around 81.66%, whereby the sellers were in charge and forced the prices to head towards the $60-$62 range. This level attracted buyers who became active in demand.
Source: X
Following the fall to these low levels, Solana began to stop forming new lows and started forming a base, meaning selling activity had reduced while accumulation increased.
The strength of the recovery increased due to the Solana price breaking through key levels of resistance and forming new higher highs and higher lows.
The ability of SOL to retake and sustain itself above the levels of $67-$68, having turned from resistance to support, also added to the strength of the recovery. Following the reversal formation, SOL held on in the range of $73-$75 without any losses in the crucial support level.
According to BitGuru, if the strength holds, there is a likelihood for SOL to rally towards the $80-$82 resistance level, which used to be the bottom when SOL was consolidating ahead of the massive downfall. The breaking above the $82.67 level would indicate a solid recovery from the sellers’ hands.
Also Read: Pi Network Calls for Urgent Protocol v25 Upgrade for Mainnet Node Operators
Analysts Warn of Near-Term Resistance
Despite maintaining the whole recovery, the market analyst Ali observed some initial signs of resistance in the short-term frame. Following the TD Sequential Buy at the level of $68.46, the Solana price increased by 8.40% and reached the maximum at $74.27.
Currently, the SOL price is approaching a technical resistance level of $74-$75, which contains a TD Sequential Sell pattern and the declining 200-period Simple Moving Average on the four-hour timeframe.
Source: X
Ali believes that such conditions increase the possibility of a retracement. In case the sellers manage to get the upper hand, then Solana may fall down to the support level of $71, and even further down to the support at the $68 mark.
At the moment, it is important for the price to hold above the support between the $67-$68 levels and also overcome the resistance near the $75 mark.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Bitcoin Price Stays Above 200-Week SMA as Market Awaits Clear Breakout Signal
