Solana Price Analysis: In the past two weeks, the cryptocurrency market has witnessed heightened volatility as Bitcoin price resonates around $60000. This consolidation has put downward pressure on several altcoins including Solana. The SOL price reverted from $160 in the second week of May and has tumbled 10% to currently trade at $143. However, this pullback in the 4-hour chart shows the formation of a flag pattern— a setup viewed as a temporary pullback before a strong rally.

Also Read: Michael Novogratz Turns Short-Term Bearish on Bitcoin, Ethereum, Solana

Solana Faces Key Resistance at $160: Will a Breakout Follow?

Solana Price Analysis| Tradingview

Amid the recent market consolidation, the Solana price correction formed a local bottom at $118.4 support. A renewed recovery from this support propelled altcoin 34.7% to challenge the resistance at $160.

However, the SOL price lacks momentum as the broader market enters a consolidation due to the BTC price wavering around $60k. A reversal from the overhead resistance triggered a 50% correction of the prior rally but also developed a flag pattern.

The two converging trend lines in the setup indicate the selling pressure is getting dissolved by the rising demand pressure. A potential breakout from the overhead trendline will signal the end of this minor correction and accelerate buying pressure.

The post-breakout rally could bolster buyers with sufficient support to challenge the $160 resistance. However, the aforementioned barrier is the last swing, and a breakout above it is needed to obtain better confirmation of recovery.

This breakout will pave the buyers’ path to chase a potential target of $184.6, followed by $210.

Also Read: 5 Top Solana Meme Coins To Buy To Swiftly To Make $80,000 From $800

Technical Indicator

  • Exponential Moving Average: The flattish 20-and-50-day EMA indicates a near-term trend is sideways. However, the price above 100-and-200-day EMA accentuates the broader trend and remains bullish.
  • Relative Strength Index: The daily RSI slope wavering around the 50% midline highlights an uncertain market sentiment.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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