Solana (SOL) Could See A Correction Despite Historic Monthly Close, $400 Still On Sight?

Rubmar Garcia

6 months ago

3 mins read

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Solana (SOL) has been one of the leading cryptocurrencies throughout this bull run, seeing a 66.8% jump in the last three months to its latest all-time high (ATH) and flipping other rivals. Despite its remarkable rally, SOL has recently lost the spotlight to Altcoins like XRP, risking a major correction in the coming days.

Solana To Retest $200?

Solana has outperformed most of the market during this cycle, leaping over 231% in the last year. The ecosystem has been the talk of the town, with Solana-based memecoins leading the market’s narrative and SOL’s DeFi activity outpacing Ethereum’s.

Less than a month ago, the cryptocurrency’s bullish rally saw the altcoin surpass Binance Coin (BNB) as the fourth-largest token by market capitalization. SOL saw its price rise near the $200 zone, propelling its market capitalization to $88 billion on November 6.

Since then, its market cap has surged nearly 20% to $105 billion, but SOL’s momentum has begun to slow down as other cryptocurrencies pick up steam. On Sunday, XRP flipped Solana and Tether (USDT) to become the third-largest crypto by market cap, sending SOL to the fifth position.

XRP’s milestone made some investors and market watchers worry about SOL’s future performance since the cryptocurrency has experienced a 14% retrace from its latest ATH of $263 nine, recorded nine days ago.

Crypto analyst Income Sharks noted that Solana displays a bearish structure on its lower timeframe chart. According to the post, the altcoin has been forming a Head and Shoulders (H&S) pattern in the past month after a three-week diagonal trendline break, suggesting a trend reversal for Solana.

On Sunday night, SOL dropped below the $230 mark, hitting its lowest price since November 15 and breaking below the pattern’s neckline. This could potentially send Solana to retrace around 10% and test its previous support zone between the $200-$210 range.

Similarly, crypto analyst CRG noted that a retest of these levels would be possible before bouncing to new highs.

SOL Sees Historic November Close

Despite the recent retrace, several crypto watchers consider SOL’s rally is far from over, highlighting the token’s strength throughout the cycle and its achievements. Crypto Jelle pointed out that Solana still targets the $400-$600 in its price discovery mode after it broke out of an 8-month bullish pennant in November and “locked in a monthly breakout too.”

Likewise, Rekt Capital noted that the cryptocurrency recorded a historic close this November, as it saw its “Highest candle-bodied Monthly Close of all-time.” Other analysts also concurred, hinting that investors should remain optimistic about the $400 target as momentum remains strong.

Moreover, Solana displays a multi-year Cup & Handle pattern, which has a potential 100% rally to the $400 target after last month’s breakout from the handle’s trendline. SOL records a 5.3% and 7.2% decline in the daily and weekly timeframes but shows a 36.3% surge in the last month.

As of this writing, Solana is trading at $224, with a 97% increase in its daily trading volume.

Solana, SOL, SOLUSDT — Solana’s performance on the weekly chart. Source: SOLUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies –or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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