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The broader market correction has plunged the Solana price below $250 this week. As bearish momentum accelerates the SOL sellers eye a prolonged breakdown of $200 support. However, as analysis of the weekly chart shows retracement assists in the formation of a well-known reversal pattern called cup and handle.
By press time, the SOL price trades at $229 with an intraday loss of 2.14%. According to Coingecko, the asset’s market cap stands at $108.5 Billion, while the $10.5 Billion.
- A cup and handle pattern drives the major recovery trend in Solana price.
- The SOL price is 12% away from the retest key support at the $200 psychological level.
- A notable drop in momentum indicator ADX hinted at temporary retracement for buyers to revive exhausted bullish momentum.
Solana Price Aims Major Support Test At $200
A four-day correction has plunged the Solana price from $264 to $230, registering a 12.5% loss. The retracement followed the pioneer cryptocurrency Bitcoin reversal before hitting the $100,000 psychological barrier.
If the bearish momentum persists, the SOL price could plunge below the 20-day EMA and retest the $200 support. The Average Directional Trend (ADX) plunged to 41% hinting weakness in a prevailing uptrend.
The exhausted bullish momentum hints at a higher possibility of extended downfall.
Reversal Pattern Sets SOL Surge Past $160 Barrier
Solana price prediction of weekly charts shows the current retracement developing a renowned reversal pattern cup and handle. The chart setup resembles a teacup, where the “cup” is a rounded U-shape, indicating a period of consolidation followed by a gradual recovery.
The “handle” is a smaller consolidation phase or slight pullback, known as the final pullback before a major breakout from neckline resistance. According to the daily exponential moving average, the SOL price could witness suitable pullback support at $200, followed by $178 and $160.
Thus, the SOL price holds a higher potential to rebound and target a $260 neckline.
Theoretically, the distance between the bottom of the cup and the neckline is the potential target for a post-breakout rally. If true, the Solana price could surge 96% to reach the $510 mark.