Solana Price Analysis: In the past two weeks, the cryptocurrency market has witnessed heightened volatility as Bitcoin price resonates around $60000. This consolidation has put downward pressure on several altcoins including Solana. The SOL price reverted from $160 in the second week of May and has tumbled 10% to currently trade at $143. However, this pullback in the 4-hour chart shows the formation of a flag pattern— a setup viewed as a temporary pullback before a strong rally.

Also Read: Michael Novogratz Turns Short-Term Bearish on Bitcoin, Ethereum, Solana

Solana Faces Key Resistance at $160: Will a Breakout Follow?

Solana Price Analysis| Tradingview

Amid the recent market consolidation, the Solana price correction formed a local bottom at $118.4 support. A renewed recovery from this support propelled altcoin 34.7% to challenge the resistance at $160.

However, the SOL price lacks momentum as the broader market enters a consolidation due to the BTC price wavering around $60k. A reversal from the overhead resistance triggered a 50% correction of the prior rally but also developed a flag pattern.

The two converging trend lines in the setup indicate the selling pressure is getting dissolved by the rising demand pressure. A potential breakout from the overhead trendline will signal the end of this minor correction and accelerate buying pressure.

The post-breakout rally could bolster buyers with sufficient support to challenge the $160 resistance. However, the aforementioned barrier is the last swing, and a breakout above it is needed to obtain better confirmation of recovery.

This breakout will pave the buyers’ path to chase a potential target of $184.6, followed by $210.

Also Read: 5 Top Solana Meme Coins To Buy To Swiftly To Make $80,000 From $800

Technical Indicator

Exponential Moving Average: The flattish 20-and-50-day EMA indicates a near-term trend is sideways. However, the price above 100-and-200-day EMA accentuates the broader trend and remains bullish.
Relative Strength Index: The daily RSI slope wavering around the 50% midline highlights an uncertain market sentiment.

The post Solana Price Analysis: Flag Pattern Suggests Imminent Breakout Rally to $200 appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am