Will Solana (SOL) drop below the short-term rising channel for a plunge to $140 amid increasing volatility?
On the one-hour chart, Solana’s recent price recovery shows a quick bounce back from the $134 level. Solana formed a low after hitting $133 last week, driven by escalating global political tensions.
The price quickly rebounded, revealing a rising channel pattern characterized by increasing momentum.
Solana’s Recovery At Risk
The recovery rally surpassed the local resistance trendline, peaking with an 11.40% surge near $150.39. However, a swift rejection from the overhead trendline caused Solana to fall below the $147 mark, indicating a negative cycle within the channel.
During this ongoing negative cycle, Solana’s market cap has dropped by 2.29% and is approaching the support trendline.
According to the Fibonacci levels throughout the correction phase, the negative cycle has struggled to maintain dominance above the 50% Fibonacci level at $147.43. Currently, with a bearish engulfing candle reflecting a 0.98% drop, Solana’s price is trading at $146.95.
Additionally, the correction phase is approaching the 200-day EMA. The rising 50-day EMA hints at a potential golden crossover, suggesting a possible bounce near this dynamic support.
However, the correction cycle within the channel has resulted in a negative crossover on the MACD indicator. This puts a risk over the support trendline and the dynamic average lines.
Will SOL Uptrend Cross $150?
A breakdown below the rising channel could jeopardize the 23.60% Fibonacci level at $140.75, with the next support level for Solana at $134.77. On a more optimistic note, the ongoing correction may be viewed as a retest phase of the broken local resistance trendline. Therefore, a bullish bounce could challenge the overhead resistance trendline for a breakout.
In case of a breakout rally, the Fibonacci levels suggest a target of $154.60 at the 78.60% and 100% Fibonacci levels.
Should the Solana price action reach the neckline at $160, it would complete a rounding bottom reversal. In the event of an extended bullish trend, the next resistance levels for Solana are projected at $166.98 and $175.74, corresponding to the 1.272 and 1.618 Fibonacci levels.
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.
