The broader market correction caused Solana price to plunge below $250 this week. As bearish momentum picks up, SOL sellers are eyeing an extended break of $200 support. However, as the weekly chart analysis shows, the retracement helps in the formation of a well-known reversal pattern called cup and handle.
At press time, SOL price is trading at $229 with an intraday loss of 2.14%. According to Coingeckothe market capitalization of the asset is $108.5 billion, while that of $10.5 billion.
- A cup and handle pattern is driving the main recovery trend in Solana price.
- SOL price is 12% away from key retest support at the psychological $200 level.
- A notable decline in the ADX momentum indicator hinted at a temporary retracement allowing buyers to reignite exhausted bullish momentum.
Solana Price aims for major test of support at $200
A four-day correction caused the price of Solana to plunge from $264 to $230, recording a loss of 12.5%. Retracement followed pioneer cryptocurrency Bitcoin reversal before reaching the psychological barrier of $100,000.
If the bearish momentum persists, SOL price could dip below the 20-day EMA and retest the $200 support. The average directional trend (ADX) has plunged to 41%, suggesting weakness in the prevailing uptrend.
The exhausted bullish momentum portends a higher possibility of a prolonged fall.
Reversal Pattern Sets SOL Rise Beyond $160 Barrier
Solana Price Prediction Weekly charts show the current retracement developing a renowned reversal pattern cup and handle. The chart pattern resembles a teacup, where the “cup” is a rounded U shape, indicating a period of consolidation followed by a gradual recovery.
The “handle” is a smaller consolidation phase or slight pullback, known as the final pullback before a major break in neckline strength. According to the daily exponential moving average, SOL price could see suitable fallback support at $200, followed by $178 and $160.
Thus, the SOL Price holds higher rebound potential and targets a neckline of $260.
Theoretically, the distance from the bottom of the cup to the neckline is the potential target for a post-breakout rally. If true, the price of Solana could increase by 96% to reach the $510 mark.