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With a bullish reversal in play, will Solana surpass the $150 mark for an extension to $169?
Despite the broader market recovery gradually losing momentum, underlying sentiments remain optimistic for the upcoming month. Solana is preparing for a breakout run as Bitcoin and other top altcoins hover near crucial levels.
Lower timeframe charts support the breakout potential, but key resistances lie ahead. Can Solana overcome these levels to drive a bullish month?
Solana’s Rounding Bottom Pattern
In the 4-hour chart, the Solana price trend reveals a rounding-bottom reversal as the recovery rally gains momentum. The neckline for this reversal aligns with the 61.80% Fibonacci level at $158.49.
This recovery has resulted in a golden crossover between the 50 and 200 EMA, with an upcoming bullish crossover between the 100 and 200 EMA. Furthermore, the consolidation between $140 and $149 hints at a double-bottom reversal.
The neckline of the double-bottom reversal aligns with the 50% Fibonacci level at $149.32. As bullish price action in the 4-hour chart suggests an uptrend continuation, the altcoin is likely to challenge the neckline of the rounding-bottom pattern.
Based on the Fibonacci levels, a bullish breakout could potentially reach the 78.60% or 100% Fibonacci levels at $172 and $192, respectively. Conversely, failure to surpass the 50% Fibonacci level at $149 could undermine the rounding-bottom reversal. In such a case, the bottom support for Solana stands at the 23.60% level, around $130.
Solana’s Bullish Resilience and Upside Targets
In the daily chart, bullish momentum shows resilience against the overhead resistance that has led to multiple lower-high formations. A double-top reversal occurred near the $200 mark in March, at $183 in July, and at $159 in August.
However, the recent rounding reversal reflects this bullish resilience. Following lower price rejections from the $117 demand zone, Solana has recovered an 18.50% jump in the last 18 days from $125.
Based on the Fibonacci levels retraced during the March correction phase, Solana’s potential price targets are $159 and $169. Conversely, the 200-day EMA at $139, close to the 23.60% Fibonacci level at $137, serves as a crucial support level.