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Will Solana (SOL) drop below the short-term rising channel for a plunge to $140 amid increasing volatility?
On the one-hour chart, Solana’s recent price recovery shows a quick bounce back from the $134 level. Solana formed a low after hitting $133 last week, driven by escalating global political tensions.
The price quickly rebounded, revealing a rising channel pattern characterized by increasing momentum.
Solana’s Recovery At Risk
The recovery rally surpassed the local resistance trendline, peaking with an 11.40% surge near $150.39. However, a swift rejection from the overhead trendline caused Solana to fall below the $147 mark, indicating a negative cycle within the channel.
During this ongoing negative cycle, Solana’s market cap has dropped by 2.29% and is approaching the support trendline.
According to the Fibonacci levels throughout the correction phase, the negative cycle has struggled to maintain dominance above the 50% Fibonacci level at $147.43. Currently, with a bearish engulfing candle reflecting a 0.98% drop, Solana’s price is trading at $146.95.
Additionally, the correction phase is approaching the 200-day EMA. The rising 50-day EMA hints at a potential golden crossover, suggesting a possible bounce near this dynamic support.
However, the correction cycle within the channel has resulted in a negative crossover on the MACD indicator. This puts a risk over the support trendline and the dynamic average lines.
Will SOL Uptrend Cross $150?
A breakdown below the rising channel could jeopardize the 23.60% Fibonacci level at $140.75, with the next support level for Solana at $134.77. On a more optimistic note, the ongoing correction may be viewed as a retest phase of the broken local resistance trendline. Therefore, a bullish bounce could challenge the overhead resistance trendline for a breakout.
In case of a breakout rally, the Fibonacci levels suggest a target of $154.60 at the 78.60% and 100% Fibonacci levels.
Should the Solana price action reach the neckline at $160, it would complete a rounding bottom reversal. In the event of an extended bullish trend, the next resistance levels for Solana are projected at $166.98 and $175.74, corresponding to the 1.272 and 1.618 Fibonacci levels.