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Solana’s price has been moving sideways due to the trend being set by the broader cryptocurrency market. Despite the growing volatility in the cryptocurrency market, Solana has shown signs that a major recovery could be on the way.
Solana’s price movement
Solana (SOL/USD) attempted to break free from the bearish trend of the broader cryptocurrency earlier this month. On February 7, SOL made a major jump to test the $120 resistance level. However, it underwent a major correction, and by February 14, the token had tested the support at $92.
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However, the dip had a major effect on demand as it placed Solana in levels that attracted short-term traders who felt left out of the previous rallies made by the token.
Currently, Solana is approaching the $100 level. During the past 24 hours, it has gained from $88, signalling that a recovery, at least for the short term, is looming. If buyers and market support continue boosting the token upwards, the other major resistance lies at $115 and taking it back to the February 7 levels.
If buy orders continue to accumulate and market makers see the potential for an uptrend, SOL could push towards $135, placing the token at over 40% above its current prices.
Bearish formation is still possible
While the current uptrend signals Solana breaking past resistance levels, the broader market is yet to establish a strong bullish flag. There is still a high possibility of SOL pushing towards lower levels.
The current uptrend will reverse if there is an increase in selling pressure. This will push SOL towards its 24-hour low of $88. If it fails to bounce from this level and the overall market support is weak, the support at $65 will be tested. Dropping to this level will invalidate the bullish case for the meme token.
Solana will revisit the $51 levels if the bearish trend is stronger. Dumping to such lows could be attributed to short-term traders being behind the current run, and if they make profits past $100 and dump, Solana could enter a sharp bear market.