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Highlights
- The formation of an inverted head and shoulder pattern in SOL signals a change in market sentiment from selling on rallies to buying on dips.
- The overall supply from the broader market may plunge the Solana coin to $160 before initiating its next leap.
- The 24-hour trading volume on the Solana coin is $2.2 Billion, indicating a 12% loss.
Solana Price Analysis: The altcoin market experienced a pause in its recovery momentum over the weekend, influenced by Bitcoin facing resistance at $67,500. With Bitcoin slightly down by 0.2%, Solana, the fifth largest cryptocurrency, saw a sharper decline of 2%, currently trading at $169. However, market participants view this downturn as a chance to recharge after the vigorous rally earlier in the week, potentially setting the stage for buyers to reenter and drive recovery as the new week progresses.
Also Read: Crypto Market Analysis 19/5: Altcoins Recovery Stalls as BTC Stabilizes at $67k
Solana Breaks $160 Neckline with Eyes Set on $210
The first three weeks of May have been notably bullish for Solana (SOL), with its price jumping from $112 to $168, marking a 50% growth. This recovery, characterized by a firm higher low, suggests buyers are accumulating at market dips, signaling a shift in market dynamics. The rising price has also formed an inverted head and shoulders pattern, indicating a bottom formation for Solana.
On May 17th, SOL price broke through the $160 neckline resistance, confirming a bullish reversal pattern. If this pattern holds, buyers could drive the post-breakout rally to $210, representing a potential 24% gain.
However, with Bitcoin stabilizing below $67,600, SOL faced overhead supply, pushing its value to $169. This minor pullback retests the asset’s sustainability above $160, providing a solid support level for a higher rally.
Conversely, a breakdown below the neckline would invalidate the bullish outlook, potentially plunging Solana back to $138.
Also Read: Bitcoin Price Analysis: Whale Accumulation Near Pre-FTX Levels Sets BTC Rally to $74K
Technical Indicator
- Exponential Moving Average: A bullish crossover between the 20- and 50-day EMA should accelerate the recovery momentum in SOL price.
- Relative Strength Indicator: The daily RSI slope above 60% assures an optimistic sentiment among traders for the near future.
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