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Here’s Why $SOL Correction May Turn To 26% Rally – Crypto News

Published

2 years ago

November 29, 2023

Dripp

Solana Price Prediction: A healthy retracement in SOL price could bolster buyers for uptrend continuation

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Published 12 mins ago

Solana Price Prediction: The ongoing correction in the Solana coin price has found suitable support at the $51.4 level. Over the past two weeks, the price rebounded twice from this level, signifying continued accumulation by buyers during market dips, a behavior often associated with strong market recovery. Within a fortnight, the coin price surged by 17.68% and currently trades at $60.5. Will this recovery surpass the $70 mark?

Also Read: Jito Launches JTO Token Airdrop for Its Solana DeFi Community

SOL Recovery to Extend 10%

A 38.2% retracement could bolster buyers for a strong rebound
The $51.4 level stands as strong support for buyers
The 24-hour trading volume on the Solana coin is $2.37 Billion, indicating a 1.3% loss.

Solana Price Prediction | TradingView Chart

For almost three weeks, the Solana price has been trading sideways between the horizontal levels of $51.4 and $67. However, a sideways turn after a significant recovery is considered an opportunity for buyers to recuperate their exhausted bullish momentum.

This consolidation showcasing a retracement to the 38.2% Fibonacci retracement level, bolstered the same bullish thesis as it is considered a healthy retracement for the next leap. As Bitcoin surged above the crucial $38,000 resistance, the SOL recovery gained momentum, recording a 4.3% intraday growth, breaking past the psychological level of $60.

Continued buying could potentially drive the SOL price up by 11% to retest the last swing high of $67.3. Should it break this barrier, a 16% rally to reach $78.2 could ensue, contributing to the formation of a rounding bottom pattern.

This pattern suggests that the prevailing downtrend might have found its bottom, hinting at an expected sustainable recovery.

SOL vs BTC Performance

Over the last three months, the SOL price has showcased significant growth during the October-November rally, in contrast to a gradual ascent in Bitcoin price. While this rapid growth appears promising, risk-averse traders might panic during occasional corrections that extend to the 38.2% to 50% Fibonacci levels. Amid the ongoing correction, coin holders may consider marking the 50% Fibonacci level at $42.75 to manage their stop loss.

Bollinger band: The downsloping upper boundary of the Bollinger band indicator could hinder the SOL recovery around the $64 mark.
Directional Moving Index: The DI+(blue) and DI-(orange) slope maintaining a bullish crossover state reflects the overall market recovery intact.

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