Solana recovers with broader market tailwinds. Will a Morning Star pattern help SOL price bounce back above $200?
With a new bullish spree in the crypto market, Solana recovered 4.24% yesterday. Creating a bullish engulfing candle, Solana has surpassed the $175 mark.
With newfound momentum, technicals are gradually turning optimistic for Solana. Will this recovery surpass the $180 supply zone to reinstate the bullish trend?
Solana Nears $180 Zone: Potential Breakout Ahead?
In the daily chart, the SOL price trend reveals a significant fall from the $260 supply zone, nearly retesting the 23.6% Fibonacci level at $159.47. This marks a 35% correction, reflecting the bearish pressure on Solana.
Solana Price Chart
With lower price rejection from the 23.6% Fibonacci level, Solana has formed a Morning Star pattern, indicating a potential reversal. The bullish engulfing candle of the pattern was formed yesterday with a 4.24% surge.
Currently, the SOL token trades at $175.70, struggling near the 38.20% Fibonacci level. Slightly above this level, the crucial volume zone at $180 acts as an immediate resistance.
Technicals Reveals Upcoming Reversal Run
The short-term recovery appears to be a potential retest of the broken zone. However, the recovery signals a potential comeback for Solana as the Chaikin Money Flow Index nears the zero line.
With a significant recovery within the negative territory, the Chaikin Money Flow Index is on the verge of turning positive. Furthermore, the technicals on the hourly timeframe are showing a bullish signal.
These signals are based on moving averages and oscillators. However, the daily timeframe continues to indicate a selling opportunity.
Whale Accumulation Strengthens the Bullish Case
Amid the positive recovery, a crypto whale has showcased strong confidence in Solana. The entity has purchased 174,767 SOL tokens over the past four days.
The purchase is worth $29.87 million from Binance. Furthermore, the whale has staked 174,705 SOL tokens, reducing the available supply and potentially strengthening Solana’s price.
Can SOL Breakout and Reclaim $200?
With growing optimism, the short-term recovery in Solana hints at a potential breakout rally. According to the Fibonacci levels, a breakout above $180 will likely challenge the 61.80% Fibonacci level at $204.
This increases the possibility of SOL surpassing the $200 psychological mark. Beyond that, a potential V-shaped recovery could push SOL towards the $260 supply zone, bringing bullish momentum back into play.
On the flip side, Solana must hold above $159.47, which serves as crucial support. Failure to sustain this level could lead to a dip toward the $150 psychological support, potentially extending the correction.
The purchase is worth $29.87 million from Binance. Furthermore, the whale has staked 174,705 SOL tokens, reducing the available supply and potentially strengthening Solana’s price.
Can SOL Breakout and Reclaim $200?
With growing optimism, the short-term recovery in Solana hints at a potential breakout rally. According to the Fibonacci levels, a breakout above $180 will likely challenge the 61.80% Fibonacci level at $204.
This increases the possibility of SOL surpassing the $200 psychological mark. Beyond that, a potential V-shaped recovery could push SOL towards the $260 supply zone, bringing bullish momentum back into play.
On the flip side, Solana must hold above $159.47, which serves as crucial support. Failure to sustain this level could lead to a dip toward the $150 psychological support, potentially extending the correction.
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