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Despite experiencing a sharp 20% price drop, which saw the coin plunge toward the $115 mark, its resilience at crucial support levels has sparked discussions about its potential to climb the ranks in the cryptocurrency market.
The price dip moved SOL toward the 100-day EMA, depicted by the orange line on the chart, which played a role in the asset's rebound. This dynamic speaks to the importance of EMAs as indicators of market sentiment. With the next support anticipated around the historical $100 level and then at the 200 EMA, around $110, SOL's reaction to these thresholds could signal its next move.
A notable feature in Solana's chart is the double-top pattern formed prior to the latest correction. This classic technical formation often points to a potential reversal from an uptrend, which has played out in SOL's recent price action. The double-top pattern reinforces the significance of the $115 level, as it mirrors the peaks of this formation, now acting as a stern resistance.
However, if SOL consolidates above the 200 EMA support, we can become slightly optimistic. If SOL can maintain above the $110 level and aim for a break past the $115 resistance, it could invalidate the bearish sentiment originated from the double-top pattern and possibly set a course toward reclaiming higher prices.
Chris Burniske suggests that while Solana has faced challenges, its abundance of meme coins that provide extremely high volatility can become a strong bullish case for it once again.