For most of 2023 and 2024, Solana (SOL) led the crypto market back into the bull cycle. But now, it has taken the back seat.
As of this writing, Solana’s price which rallied from $8 to nearly $300 in less than three years, is back below the $130 mark. This correction has spread speculation that the token is about to return to the bear market.
While these concerns are valid, indicators reveal that SOL is showing strength, indicating that another downturn might not occur as quickly as anticipated.
After reaching a new all-time high on Jan. 19, Solana’s price briefly fell below $120 on March 11. This development caused panic with some analysts predicting that the altcoin’s value might continue to trade lower.
However, SOL recovered and retested $137 before its recent decline to $128. According to the daily chart, the decline drove Solana’s price to hit lower highs and lower lows.
Hitting these low values then led to the formation of a falling wedge. A falling wedge is a bullish reversal chart pattern formed by two descending trendlines.
The upper trendline represents lower highs and the other marks lower lows. This pattern typically indicates a potential breakout to the upside once the price breaches resistance.
As seen below, SOL price is flirting with the resistance near $135.35 with support at $117.21. Amid this setup, the Moving Average Convergence Divergence (MACD) has returned to the positive region.
This MACD reading indicates rising bullish momentum. If sustained, and the 12 EMA (blue) maintains its crossover above the 26 EMA (orange), then SOL might break above the upper trendline.
Once broken, the cryptocurrency’s value next target could be around $178.89, invalidating the bearish bias it previously showed.
SOL Price Analysis: Likely to Breach Resistance
Further assessment of the daily chart shows validation from the Chaikin Money Flow (CMF). The CMF measures the flow of liquidity in and out of a cryptocurrency.
When the CMF is positive, it indicates rising accumulation, which could positively impact the price. A decline, on the other hand, indicates distribution, which is bearish.
As the chart below illustrates, Solana’s price slight rebound happened alongside a jump in the indicator’s rating. At press time, the indicator’s reading is 0.02, indicating that SOL is experiencing buying pressure.
If sustained, SOL’s price might reclaim $160.60 at the 0.618 Fibonacci level. Once that happens, the next target for the altcoin could be a run $186.15 at the 0.50 Fib level.
Should buying pressure intensify, then Solana’s price might surpass $200 again. However, if the token fails to retest $160.60, this forecast might not come to pass.
Instead, SOL might experience a decline to $109.35. If demand fails to pick up at this point, the price might crash toward $77.91.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
