As the cryptocurrency market experiences a relief rally, Solana (SOL) has impressively maintained its value above the crucial $80 mark, demonstrating a strong resilience. The altcoin has seen a 23% price increase within a week, now trading at $97.3, signaling a renewed investor interest.
The Technical Outlook for Solana
Following a significant correction from $126 to $79 after the U.S. approved its first Bitcoin ETF, Solana’s price found support at the $80 level, aligning with the 38.2% Fibonacci retracement level. This price action has set the stage for a potential recovery.
With Bitcoin’s price surge past $42,000, the crypto market, including SOL, has shown signs of recovery. Analysts are watching the $102 resistance level, which aligns with the 50% Fibonacci retracement, as the next target for buyers.
A break above this resistance could lead to a revisit of the $126 level for SOL. The price pattern on the daily chart suggests that completing a “Cup and Handle” formation, indicative of a bullish reversal, could signal a significant trend change for Solana.
The “Cup and Handle” pattern, which has been forming for approximately two years, suggests a long-term uptrend for Solana. A breakout above the $126 resistance could confirm a trend reversal and the end of a consolidation phase, potentially pushing SOL’s price towards $256.