<a href="https://en.bitcoinhaber.net/solana-surges-to-become-the-fifth-largest-cryptocurrency-by-market-cap”>Solana (SOL) recently pulled back from nearly its highest level of the year at $126.36, triggering a new correction. Over the past three days, the cryptocurrency’s price has dropped by 21.6%, revisiting the $100 psychological level, which aligns with the 23.6% Fibonacci retracement level. The crypto markets are now buzzing with anticipation about future expectations.
Solana’s 24-hour trading volume has decreased by 1%, amounting to $4.49 billion. Over the last four months, SOL has shown a significant recovery, surging from a low of $17.3 in mid-September to $126.2, marking a 626% growth. With a market cap of $46 billion, Solana is currently positioned as the fifth-largest cryptocurrency.
After gaining momentum in the second half of December, Solana’s price created a local peak at $126.36 and then retraced to the 23.6% Fibonacci level at $100. This convergence has formed a high area of interest (AOI), leading to a 6% price increase today and the formation of a bullish engulfing candle. Theoretically, a retracement to this Fibonacci level could be considered healthy, potentially allowing buyers to regain strength and continue the recovery rally.
A potential rebound from the mentioned support could increase SOL’s price by 16.6%, challenging the high resistance again at $126.36. A breakout above this level would better confirm the continuation of the uptrend, possibly pushing the price towards targets of $143 and then $177.
While Solana’s short-term outlook shows a strong bullish trend, the ongoing consolidation in Bitcoin, the largest cryptocurrency, continues to create a sense of uncertainty in the market. Should SOL’s price fall below the $100 level, crypto holders could be looking at critical support at $84 and $72, corresponding to the 38.2% and 50% Fibonacci levels, respectively. Any correction below the 50% level could start to reflect a weakness in buyer sentiment.
