The price of Solana’s SOL token has pulled back sharply from its February highs, presenting a test of a key support level that could determine if bulls can regain control of the trend. After showing the potential for a trend reversal, Solana now faces hurdles that need overcoming for additional gains.
Inverse Head and Shoulders Breakout Level Must Hold
As crypto trader MatthewHyland_ noted on X (Twitter), Solana is currently retesting the breakout point of an inverse head and shoulders pattern around the $101 level. This marks a pivotal make-or-break point, as failure to hold here would negatively impact Solana’s market structure. Losing this support could kickstart an extended downtrend.
Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +Broader Pullback Aligns with Retest
Adding context, analyst CalebFranzen points out that Solana’s 15% drop aligns with a broader crypto pullback where double-digit declines hit many altcoins. Solana fell over 20% from its December high, showing considerable bearish pressure.
Further analysis reveals the 50-day moving average sits above the current $101 Solana price, presenting another layer of potential overhead resistance for bulls to overcome. With bears clearly in control over the last week, bullish signals remain elusive.
In summary, Solana bulls face an uphill battle to flip the script and reignite an uptrend. The $101 support must hold to avoid inflicting further chart damage. However, with largely bearish sentiment and technical alignment in place currently, additional downside looks possible for SOL in the near term before substantive relief comes for battered bulls.
You may also be interested in:
- Ripple Analyst Predicts $5.85 XRP as Next Target in Ongoing Bull Run – But There’s a Catch
- DeFi Whale Activity Fuels Spell Token’s Price Explosion: Expert Points To More Upside – Here is His Outlook
- DeeStream (DST)’s Potential Could Take on Pyth Network (PYTH) and Cardano (ADA) in Battle for Chart Supremacy
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
