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.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
