Last Year’s Cryptocurrency Gains and Solana’s Role
Last year witnessed significant gains in the cryptocurrency market, and Solana (SOL) emerged as a key player in the market’s rebound. Currently hovering around $120, investors are closely watching SOL’s future movements, speculating whether it will decrease to $90 or escalate to $125 in the upcoming month of February.
Robust Performance Amid Market Fluctuations
Solana’s value has consistently held strong above the $106 threshold, even amidst the broader market’s unpredictable swings, instilling confidence in investors. The emergence of a morning star candlestick pattern at this price point suggests a robust demand that could propel the cryptocurrency’s ongoing resurgence. However, the potential impact of a Bitcoin price correction from its current $52,000 stance on SOL’s stability remains uncertain.
Signs of Aggressive Buying Activity
The daily chart analysis of Solana reveals a sharp recovery post-correction, with the altcoin bouncing back from the $79 support level as buyers took charge. This V-shaped rebound on the chart represents forceful price action, with SOL’s valuation climbing 42% in a single month.
The recent uptrend has seen buyers reclaiming 50% of the losses from the previous downturn, demonstrating the intensity of their buying pressure. On February 17th, Solana’s price bounced back from the support trend line and a crucial slope area, outlined by the 20-day Exponential Moving Average (EMA) and further affirmed by a morning star candlestick pattern. If this momentum is sustained, a 13% increase is within reach, potentially hitting the $125 resistance.
Chart trends point towards the formation of a cup and handle pattern, with the current retracement potentially being the final dip before a substantial upward price trajectory commences. A breakout to $125 could expedite SOL’s recovery journey, with chances to extend towards a $250 objective. On the flip side, a drop below the lower support trend line could depress Solana’s price under $90.
