- SOL closes on a crucial foothold that may decide the altcoin's direction in the coming sessions.
- Solana has to maintain above $189 to increase recovery chances and attain new record highs.
- If Solana decline beneath the vital support, it might see a 34% drop.
Solana Prepares a Steady Recovery
According to the twelve-hour price chart, Solana has printed an ascending channel as $SOL forms higher lows and higher highs. After declining by almost 25% from its peaks, the ETH competitor nears significant support at the prevailing chart pattern's lower border at $189.
If Solana holds above this zone, market participants can anticipate recoveries for the crypto. The primary technical pattern shows that Solana can tag the chart pattern's upper boundary at $325, matching with 127.2% FIB retracement zone.
However, some barriers might surface before Solana bulls attain their optimistic thesis. The initial obstacle to confront the alt stands at 100 12hr SMA at $193, then around 78.6% FIB retracement level. Further challenges can emerge at the 50 12hr Simple Moving Average at $222, then 21 12hr Simple Moving Average at $228 before SOL approaches the parallel channel's middle border at $237. Increased sell orders might have SOL securing nearby support before encountering the hurdle around MRI's resistance at $252.
Lastly, SOL will have to overpower the obstacle at $259 before attaining its bullish aim. However, bears dominance, Solana can drop to the Momentum Reversal Indicators support line. Plunging under the parallel channel's lower border can see the alt securing support at $186.
If SOL drops under the $189 - $186 range, enthusiasts might forget about the bullish narrative as the altcoin can see a 34% plummet towards $140, given by the prevailing chart's bearish target.
Keep in mind that the crypto space has sustained plunges over the past few days. For now, analysts trust the tokens prepare for a massive upswing in the coming month, ending the year with record peaks. Feel free to leave your reply in the section below.