As Solana (SOL) fails to reclaim a major resistance area, one market observer suggested that the cryptocurrency is poised to retest the November lows. However, other analysts predicted that the altcoin consolidation period could end soon.
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Solana rejected from key area
On Friday, Solana faced a nearly 4% correction after attempting to reclaim a crucial resistance zone for the second time this week. The cryptocurrency has been trading between the $120-$145 price range since the early November correction, hitting its local lows three weeks ago.
Amid the cryptocurrency market’s star-of-the-year rally, SOL jumped more than 13% from its yearly open, breaking a three-month bearish trend and hitting a one-month high of $143.4 earlier this week.
After being rejected from the upper boundary on Tuesday, the altcoin is now attempting to build a base below the $140 level, where the cryptocurrency has faced stiff resistance over the past three months.
Despite the increase, Crypto market watcher Batman provided that SOL could pull back towards the November lows as a bullish reversal pattern appears to be forming on its one-day period.
In an X post, the analyst noted that the altcoin was rejected by the strong resistance area and claimed that a local top had formed. As a result, the cryptocurrency’s next support area is around the $128-$130 area, where its unfilled bullish fair value gap (FVG) lies.
Crypto Batman also noted that Solana has potentially been forming an inverse head and shoulders pattern since the Q4 corrections. According to the chart, the cryptocurrency formed the left shoulder and head patterns during the November and December pullbacks, with the neckline around the $145 area.
Additionally, the recent rejection could indicate that the right shoulder has begun to form, which would cause the price to fall to its late November lows before retesting the pattern’s neckline and potentially breaking if the formation is confirmed.
Is SUN waking up?
King Arthur’s Market Watcher shared a bullish outlook for Solana, stating that the altcoin is “finally waking up.” He stated that “We’ve been watching that long downward slide for a while now, and it’s very good to see SOL finally break free from that falling channel. This is a great first step, but let’s stay alert.”
As he explained, breaking through the $143 level is crucial for Solana’s momentum as it would open the door to a recovery of the $152 level, lost during the November 13 breakout.
“If we achieve that, I would say the uptrend is officially back on track with my eyes on $171.55,” he said. However, he warned that a drop below the $133 area would suggest that the price is not ready for a bullish continuation.
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Meanwhile, Crypto analyst Jelle pointed He notes that Solana has not been able to challenge the psychological barrier of $200, falling below this level in recent months. He suggested that its recent performance is starting to resemble BNB’s price action.
“It’s starting to feel like BNB. Sideways for what seems like an eternity, and then a sudden expansion again. (…) Expecting the same result,” he concluded.
At the time of writing, Solana is trading at $134.9, down 2.3% in the daily period.
Featured image from Unsplash.com, chart from TradingView.com
