- Solana price is down 5% on the day, and over 20% over the last week.
- SOL could nurture a recovery if the bulls hold above $130.45.
- A break and close below $120 would invalidate the bullish thesis.
Solana (SOL) price is nurturing a recovery rally along with the broader market as Bitcoin price reclaims $64,000. Amid mounting selling pressure, SOL dipped 20% on the weekly timeframe and 5% in the last day.
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After a 20% dump on the week, which marked the execution of the rising wedge pattern, the Solana price is attempting a recovery that is contingent on whether Bitcoin price recovers or crashes further. If the SOL bulls can hold above $130.45, then the altcoin could pivot here for a recovery rally.
This level is significant as it nearly confluences with the 200-day Simple Moving Average (SMA) at $131.39, denoting a strong support zone. When the SMAs are climbing, it typically indicates a bullish trend in the price of the asset.
Notice the Relative Strength Index (RSI) has bounced above the 30 threshold, pushing north to show rising momentum. This is reinforced by the climbing 50, 200, and 100-day SMAs at $163.07, $131.39, and $93.40 respectively. Increased buying pressure could see the Solana price shatter resistance due to the 50-day SMA at $163.07.
A flip of this roadblock into support would encourage more buy orders, sending SOL price to breach $180.00. In a highly bullish case, the Solana price could extend further, potentially reclaiming the $210.18 range high. This would constitute a climb of nearly 25% above current levels.
SOL/USDT 1-day chart
Conversely, if Bitcoin price crashes further, Solana price could also follow, losing the crucial $130.45 support level. Enhanced seller momentum could see SOL clear the Saturday range low of $116.00.
This would produce a lower low. A decisive candlestick close below this level would invalidate the bullish thesis.
