Is Solana Price Ready to Reclaim $130 Before February End?

Amid the weakening bullish momentum in the crypto market, the Solana price witnessed high volatility above $106. The daily chart showing long tail rejection candles at this local support indicates the buyers are actively accumulating a pullback. Should you enter this dip or brace for a prolonged correction?

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Sustainable Recovery Sets Solana Price Leap to $125

An analysis of the daily time frame chart shows the Solana coin made a quick rebound from the last correction phase as the buyer regained control at $79 support. A V-shaped recovery is a sign of aggressive momentum and uplifted the asset price by 42% within a month.

The renewed recovery regained 50% of the losses witnessed during the last pullback indicating the buyers continue to dominate this asset. Moreover, an ascending trendline is acting as a dynamic support to keep the recovery trend intact and extend the bull march.

On February 17th, the SOL price rebounded from the support trendline and 20-day EMA slope with a morning star candle pattern. If the recovery momentum persists, the buyers are likely to drive a 13% upswing to hit the neckline resistance of the cup and handle pattern at $125.

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Cup and Handle Pattern Carries Current Recovery

As Coingape earlier reported, the current upswing in SOL price is developing the handle portion of a cup and handle pattern. In theory, this pullback is the last correction the assets face before buyers give a massive breakout to trigger a directional trend. A bullish breakout from the resistance trendline at $125 will intensify the recovery momentum. With sustained buying, the buyers may chase the potential target of $250 if the pattern holds true.

If the lower support trendline is breached, the SOL price will be at risk of falling below $90.

Technical Indicator

• Exponential Moving Average: The fast-moving 20-and-50-day EMA may offer suitable pullback support to buyers.
• Average Directional Index: The ADX slope at 14% reflects the last correction assisted buyers in reviving strength for the higher rally.

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