Solana Price Prediction: Healthy Retracement Prepare Buyers for 45% Rally

Solana Price Prediction: Amid the increasing uncertainty in the crypto market, the Solana price has been trading sideways within two horizontal levels of $67 and $51.5. These levels are tested twice and indicate no dominance from buyers or sellers. However, as per the Fibonacci retracement level, this correction lies within a zone of healthy retracement, indicating a higher potential of bouncing back.

Also Read: Solana (SOL) Makes History With About 51M Surge in Daily Transactions

A Healthy Retracement May Prolong Recovery

• Rounding bottom pattern governs a recovery trend in Solana price
• The falling price may find suitable support of $51 and $42.5.
• The 24-hour trading volume on the Solana coin is $793 Million, indicating a 34% loss.

Source-Tradingview

The daily chart indicates that the Solana price recovery is aligning with a rounding bottom pattern, a bullish indicator that often signifies sustainable growth and suggests that the asset may have established a solid bottom from which to reverse its trend. 

Following this pattern, and aided by a broader market recovery, the SOL price began to regain momentum from mid-October, bouncing back from the $20 mark. This recovery saw the coin price rally by nearly 225% over five weeks, reaching a high of $67.43. 

However, the price faced a reversal at this point, coinciding with a significant sell-off in the market. Notably, during its ongoing rally, the SOL price has experienced several such pullbacks, typically retracing to the 38.2% or 50% Fibonacci levels. 

Currently, the Solana coin is trading around $57, and as long as it maintains above the 50% Fibonacci level (around $42), there remains an opportunity for a bullish resurgence. If the bullish trend does resume, the prices could potentially ascend towards targets of $78.2, followed by $100 and $121.75.

Steady Rise in Active Addresses

Source- TheBlock

Despite a correction phase in the price behavior, the active addresses in the Solana network show Parabolic growth. According to on-chain data from ‘The Block,’ the number of active addresses has reached a six-month high of 444.48k. This higher number of active addresses indicates growing interest and participation in the Solana ecosystem and the demand for SOL tokens in the long term.

• Vortex indicator: A bearish crossover between the VI+ And VI- slopes accentuate a correction mode is active.
• Exponential Moving Average: The 20-day EMA slope offers strong pullback support to buyers.