- Solana (SOL) holds above the $200 psychological mark despite a 1.12% dip, signaling potential for a bullish reversal.
- A double-bottom pattern is forming, with the neckline at $216 and key support at $196.48.
- If bullish momentum continues, SOL could target $250, $285, and potentially $350; a breakdown could test $150 support.
Solana is grappling with the $200 psychological level as the broader crypto market rebounds to a $3.24 trillion valuation. Despite a 1.12% drop in the last 24 hours, SOL’s price structure suggests a potential bullish reversal, with its sights set on reclaiming a $100 billion market cap.
Double-Bottom Reversal in Play for Solana
On the daily chart, Solana is forming a double-bottom reversal pattern, a bullish setup supported by key support at the 23.6% Fibonacci level ($196.48). This pattern indicates the possibility of a trend reversal if SOL can break through the neckline resistance at $216.
Further supporting the bullish case, the Relative Strength Index (RSI) shows a bullish divergence, hinting at increasing buying momentum. However, the Super Trend indicator still signals a broader bearish trend, suggesting that the recovery may face some headwinds before gaining full momentum.
Crypto analyst Ali Martinez recently pointed out that Solana is at a critical juncture, highlighting a rising channel pattern on the three-day chart. According to Martinez, $198 is a crucial support level that aligns with the 61.8% Fibonacci retracement and the local trendline support.
Martinez warns that a bearish close below $198 could lead to a further decline, testing the $150 psychological support. However, if SOL holds this level and rallies, the altcoin could reach the 1.414 Fibonacci extension near $350, marking a significant bullish milestone.
SOL Price Prediction: Can It Break $350?
If Solana successfully completes the double-bottom breakout, it will likely challenge the $250 resistance, followed by a critical test at $285. A sustained breakout above these levels could pave the way for a rally toward the $350 milestone, especially if the broader crypto market continues its recovery.
On the downside, failure to hold the $196-$198 support zone could push SOL toward $175 or even $150, which are key psychological support levels to watch.
