Solana (SOL) has recently experienced a price decline, settling at $178 after reaching highs of around $186. This drop, a 5.29% decrease over the last 24 hours, raises the question: What lies ahead for Solana’s future?
While the cryptocurrency faces a short-term pullback, technical indicators and chart patterns suggest that a price surge in the coming months may be possible.
Solana (SOL) current price performance and market sentiment
As of press time, Solana was trading at $176, with a market capitalization of $85.57 billion. This reflects a 5.25% decline in the overall market value, although the 24-hour trading volume has spiked by 64.67%, reaching $2.76 billion.
The sharp decline in price within the last few hours points to the possibility of a market correction or consolidation before the next big move.
Bullish cup-and-handle pattern: A potential breakout ahead
A key feature in Solana’s price chart is the cup-and-handle pattern, a bullish continuation formation that often signals the potential for a substantial price increase.
This pattern appears after a prolonged downtrend, as Solana’s price consolidates and forms the “cup” before a potential breakout to higher levels. Based on this pattern, Solana may be poised for a price surge, especially if it breaks through key resistance levels.
Fibonacci retracement levels offer further insight into possible price targets. The 0.236 level is around $19.51, while the 0.618 level is $123.44. Higher targets extend beyond $250, with the possibility of a move toward $380 if Solana breaks past $250. These Fibonacci extensions offer insight into the potential upside should the bullish scenario unfold.
Short-term indicators: Caution amid bearish momentum
While the cup-and-handle formation points to bullish potential, short-term indicators tell a different story. On the 4-hour chart, Solana’s price has recently dropped from $182.44 to $177.51, reflecting a 2.66% decline.
The Relative Strength Index (RSI) currently sits at 27.74, indicating that Solana is in oversold territory. An RSI below 30 signals that a reversal or price stabilization could occur if buying pressure resumes.
Nonetheless, the Moving Average Convergence Divergence (MACD) points to a bearish signal: the MACD is at -3.40, and the histogram is below the line. Although some recovery is still possible, the trend indicates that the market is still in negative territory next year.
