Solana, often referred to as the Ethereum killer, is demonstrating strong signs of a comeback in the cryptocurrency market. Following a period of volatility and a significant price drop, SOL has rebounded impressively from the $124 level and is currently trading in the $135 to $138 range. This resurgence is particularly noteworthy given the overall uncertainty in the crypto market, highlighting Solana’s resilience.
So, what is driving this rebound? Is it simply a technical bounce, or are there underlying fundamental factors at play such as ETF speculation and institutional adoption?
Recent Pullback & Recovery: What Just Happened?
Last week, Solana experienced a sharp decline below the $130 support level, briefly falling to around $124. While this initially caused panic among short-term investors, it turned out to be a liquidity sweep, clearing out weak positions before a swift rebound. The bounce back was quick and decisive, with SOL reclaiming the $135 mark within a few days. This type of V-shaped recovery often indicates strong underlying demand, which seems to be the case with Solana.
Solana Price Prediction: Where Will SOL Head Next?
Despite maintaining a bearish trend, SOL remains within a bullish pattern. The token has bounced back from the lower support of a descending parallel channel, suggesting a potential move towards resistance. The key question now is whether SOL will surpass the critical resistance level at $142.
The chart above shows SOL attempting to break through the neckline of a cup & handle pattern. A breakout from this range could propel the price towards highs above $220 initially and later above $250. With the RSI indicating a bullish divergence, there is optimism for SOL to surpass $142 and target resistance around $155. Failure to do so could result in a prolonged handle formation leading to a bearish trend.
Nevertheless, with the price nearing the psychological barrier at $140 and positive fundamentals in play, it is anticipated that Solana (SOL) price will surge above $300 in the next bullish wave.