Solana’s bullish flag formation finds strong support at $140 as the short-term pullback makes buyers cautious. Will an upside move propel Solana to $200, or is a crash to $100 imminent?
Failing to maintain the bullish momentum, Solana continues its struggle to hold dominion over the crucial support of $150. Amid a surge in bearish sentiments in the crypto market as Bitcoin dips under $60K, Solana prepares to bounce back. Will the bullish powers lead to a price jump to $200?
Solana’s V-shaped Reversal Makes A Bullish Flag
Concluding a bearish patch between July 29 and August 5, the 42% dip drops Solana to $110 from $192. The V-shaped reversal tops $160 before taking another retest to $140 amid a quick bullish bounce.
The recent pullback phase completes a bullish flag pattern in the chart above with a declining trend and solid support at $140. Currently, Solana trades at $145.09 while facing opposition from all the crucial EMAs (20:red, 50:orange, 100:blue, and 200:violet).
However, the average lines in the MACD indicator prepare for a crossover to regain positive alignment. Thus, the momentum indicator signals a potential reversal.
Will Bulls Propel Solana to $200?
In the chart below, Solana’s quick reversal rally, accounting for a 33.22% jump, fails to surpass $160 and drops to $140 instead. Further, the pullback phase starts a bear run in the super-trend indicator, as shown in the chart below.
Based on the Fibonacci levels, Solana consolidates between the 38.20% level at $141.41 and the 50% level at $151. A bullish breakout of $151 could find resistance at a 61.80% Fib level of $160 and a 78.60% Fib level of $174 before topping the $192 peak.
A Counter Opinion for Solana
In a recent tweet, Ali Martinez mentioned the possibility of a head-and-shoulder with a neckline for $141.
#Solana could be forming a head and shoulders pattern in the hourly chart, which suggests that a drop below $141 might trigger a correction that sends $SOL to $122! pic.twitter.com/o39Vn0FY8z
— Ali (@ali_charts) August 12, 2024
However, the recent price movement reveals a bullish sustenance above the neckline. Nevertheless, a breakdown below $140 will nullify the bullish flag pattern.
In such a case, a bearish run could result in a retest of the 23.60% Fibonacci level at $129 or $110.