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Solana retests its breakout level at $124 after a 2.55% drop. A rebound could push prices to $150, but one analyst signals the risk of a fall to $65.
Following a failed recovery attempt this week, altcoin prices have dipped, bringing Solana back to a market price of $124. The $SOL price dropped 2.55% on April 15, fueling a 1.66% intraday decline.
Currently, Solana is taking support from a key moving average line, hinting at a potential reversal. Could this propel the $SOL price back to $150?
Solana Price Analysis Reveals 20% Upside Potential
Solana’s price action confirmed a bullish breakout of an inverted head-and-shoulders pattern on the 4-hour chart on April 12. The breakout rally peaked near the $135 mark before encountering significant overhead resistance.
Bearish pressure near $135 resulted in multiple long-wick candles, with prices finding support at the 200 EMA line. Additionally, the 38.2% Fibonacci level at $128 reinforced the bullish floor alongside the 200 EMA.
However, a broader market pullback has dragged the $SOL price below $128. Currently, the downturn holds above the 50 and 100 EMA lines. Notably, a recent bullish crossover between the 50 and 100 EMAs suggests a short-term upward momentum.
Interestingly, Solana’s pullback appears to be a retest of the inverted head-and-shoulders breakout. The $SOL price has completed the retest near the neckline at $124.
Despite the potential for a bullish reversal post-retest, the MACD indicator signals a sell. The MACD and signal lines are trending downward toward the zero line following a bearish crossover.
Based on Fibonacci levels, a successful post-retest reversal could push Solana past the 50% Fibonacci retracement level, targeting the $150 zone—an upside potential of nearly 20%.
Alternatively, a breakdown below $124 could lead to a test of the $116 support level or the psychological $100 mark.
Solana Records All-time High Total Monthly Active Wallets
Despite the short-term pullback in Solana prices, the number of active addresses on the Solana network has increased to 3.94 million.
Additionally, the monthly active wallets on Solana hit a new all-time high of 68 million in March, compared to the nearest competitor, $SUI. The difference in the monthly active wallets between $SUI and Solana is 30 million. The monthly active wallets on $SUI were 38 million in March, reflecting a 1.8x difference between the two chains.
Notably, this reflects a short-term growth in network activity, ignoring the market volatility.
Analyst Warns of A Drop to $60
Despite signs of a potential bullish recovery and improving network fundamentals, crypto analyst Ali Martinez warns of a possible correction in Solana.
In a recent X post, Ali highlighted the potential for a breakdown of an ascending broadening pattern visible on the 3-day chart. If this correction unfolds, he sets a bearish target for Solana at $65.
For all we know, #Solana $SOL might be retesting the breakout zone from a right-angled ascending broadening pattern, with the $65 target still in play. pic.twitter.com/vujFJQWurz
— Ali (@ali_charts) April 16, 2025