With Solana (SOL) failing to reclaim a key resistance area, one market watcher suggested the cryptocurrency is ready 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 suffered a correction of almost 4% after trying to recapture 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 crypto market’s star-of-the-year rally, SOL rose more than 13% from its annual open, breaking its three-month downtrend and hitting a one-month high of $143.4 earlier this week.
After being rejected from the upper limit on Tuesday, the altcoin is now trying to build a base below the $140 level, where the cryptocurrency has encountered strong resistance over the past three months.
Despite the increase, says market observer Crypto Batman predicted that SOL could return to the November lows as a bullish reversal pattern appears to be forming on the one-day time frame.
In an X post, the analyst noted that the altcoin has been rejected by the strong resistance area, claiming that a local top has formed. As a result, the cryptocurrency’s next support area is around $128-$130, where the unfilled bullish Fair Value Gap (FVG) is located.
Crypto Batman also pointed out that Solana may be forming an inverse head-and-shoulders pattern since the fourth-quarter corrections. According to the chart, the cryptocurrency formed the left shoulder and main pattern during the November and December pullbacks, with a neckline around $145.
Additionally, the recent rejection could signal that the right shoulder is beginning to form, which would send price down to the late November low before retesting the pattern’s neckline and possibly breaking out if the formation is confirmed.
Is SOL waking up?
Market keeper King Arthur shared a bullish outlook for Solana, confirming that the altcoin is “finally waking up.” He confirmed: “We’ve been watching that long downward move for a while now and it’s so good to see SOL finally breaking away from that descending channel. This is a huge first step, but let’s stay focused.”
As he explained, breaking the $143 level is crucial for Solana’s momentum as it would open the door for a recapture of the $152 level, which was lost during the November 13 crisis.
“If we succeed, I would say the uptrend is officially back on track, with my eyes on $171.55,” he claimed. However, he warned that a decline below the $133 area would indicate that the price is not ready for a bullish continuation.
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Meanwhile, analyst Crypto Jelle be shows that Solana has failed to break the psychological barrier of $200 and has fallen 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 a bit like BNB. Sideways for what feels like an eternity – and then sudden expansion again. (…) Waiting for the same outcome,” he concluded.
At the time of writing, Solana is trading at $134.9, down 2.3% in the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com