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Solana (SOL) has recovered from the recent market pullback after bouncing from its local bottom. Amid its recent breakout from a bullish formation, some market watchers suggest that the cryptocurrency could recover its start-of-year glory.
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Solana Breakout Eyes $164
Solana is recording a 2.45% surge in the weekly timeframe after recovering from its recent drop to the $140 area. The altcoin has seen a significant recovery from its multi-month downtrend, which led the token to hit a 14-month low of $95 during the early April retraces.
However, SOL lost the $160 area amid the recent market corrections, dipping 11% in one week. Over the weekend, its price bounced nearly 10%, reclaiming the $150 level as support and forming an ascending triangle pattern.
Crypto analyst Ali Martinez highlighted the 3-day formation in Solana’s chart, suggesting a potential 6% jump to its recently lost support level. According to the post, the cryptocurrency broke out of the triangle formation on Monday after reclaiming the $155 area.
A retest and breakout confirmation could propel Solana to the $164 barrier, which has not been seen in two weeks.
Analyst CW noted that if SOL breaks through the selling barrier around the $160 level, “the previous price will recover quickly,” as reclaiming this level could send the price straight to the $180 area.
Notably, the altcoin’s next significant selling wall is around the $180 resistance, which it has been unable to reclaim despite touching a $187 three-month high during the recent market rally.
Recovering this key barrier could also push SOL’s price toward the $200 mark, enabling a rally to new highs. However, failing to hold the current levels could send the cryptocurrency’s price back toward the $142 buying wall, which served as support last week, or even the $135 level, where the next buy wall sits.
SOL Preparing To Climb Higher?
Market watcher Jeremy pointed out that Solana is “finally breaking out from this downtrend consolidation.” Per the post, the cryptocurrency has been consolidating in a descending channel since late May, hovering between the $140-$187 price range.
Throughout this period, SOL’s price moved from the $180 mark toward the $144 support. Nonetheless, it broke out of the two-week descending channel after reclaiming the $155 level.
Jeremy suggested that Solana’s price could “actually climb higher” if global conflicts and political disputes, like the Trump-Musk online feud, don’t continue to affect the market, concluding that “1 SOL = $300 is just a matter of time.”
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Meanwhile, crypto trader Coinvo recently affirmed that SOL’s bottom “is finally in,” highlighting a potential bullish megaphone pattern in SOL’s chart. The 18-month pattern shows that the fourth wave bounced from the formation’s lower boundary during the April pullback.
This could signal a potential surge to the upper boundary, around the all-time high (ATH) levels, during the fifth wave. A breakout above the pattern’s resistance line could propel Solana to new highs
As of this writing, Solana trades at $156, a 1.88% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
