fxstreet.com
- Solana price has rallied roughly 17% over the past day, recovering losses from the COVID-induced crash.
- A minor pullback is likely before SOL heads on a 15% upswing to $226.
- A daily candlestick close below $185 will invalidate the bullish thesis.
Solana price appears to be making a comeback after it slipped into a steep correction since its all-time high on November 7. This downswing has stopped after retesting a crucial support level and is on a journey to head higher.
Solana price looks to make higher highs
Solana price dropped roughly 30% from November 7 to November 28 as the crypto markets experienced a shift in momentum. The correction, while brutal, allowed market makers to collect liquidity resting below the $185 support level. As a result, SOL bounced back quickly and rallied 10%.
Currently, Solana price is contemplating a downswing to the 50% retracement level at $197. In some cases, the downswing could extend to the 62% or 70.5% Fibonacci retracement levels at $194 or $193. A retest of either of these levels will trigger SOL to move 10% and retest $216. If the buying pressure persists, the “Ethereum-killer” could extend this run-up to 15% at $226.
Depending on the bullish momentum, market makers could also push Solana price to collect the liquidity resting above the $245 level. Due to double top formation, SOL could quickly revisit this area if the market structure flips bullish.
SOL/USD 4-hour chart
While things are looking up for Solana price, a breakdown of the 79% Fibonacci retracement level at $191 will lead SOL toward the range low at $187 that nearly coincides with the critical support level at $185. A daily candlestick close below $185 will create a lower low and invalidate the bullish thesis. In this situation, Solana price could revisit the $178 level.