Throughout the bull market, Solana (SOL) has been one of the leading cryptocurrencies, rising 66.8% in the past three months, reaching an all-time high (ATH), and outperforming its competitors. Despite SOL's impressive gains, it has recently lost the attention of altcoins like XRP, and a significant pullback may occur in the coming days.
Will Solana retest $200?
Throughout this cycle, Solana (SOL) has outperformed most of the market, with a gain of over 231% last year. The ecosystem has been a hot topic, with Solana-based memecoins leading the market narrative, and SOL's DeFi activity even surpassing that of Ethereum.
Less than a month ago, the cryptocurrency bull market rebound allowed Solana to surpass Binance Coin (BNB), becoming the fourth-largest token by market capitalization. The price of SOL once surged to around $200, pushing its market capitalization to $88 billion on November 6.
However, with the rise of other cryptocurrencies, SOL's momentum has started to slow down. XRP surpassed Solana and Tether (USDT) on Sunday, becoming the third-largest cryptocurrency by market capitalization, while SOL slipped to fifth place.
XRP's milestone has raised concerns among some investors and market observers about SOL's future performance, especially as SOL's price has pulled back 14% from its recent high of $263 set 9 days ago. Cryptocurrency analyst Income Sharks pointed out that Solana shows a bearish structure on lower timeframes. According to the analysis, this altcoin has formed a head and shoulders (H&S) pattern over the past month, suggesting a potential trend reversal for Solana.
On Sunday night, SOL fell below the $230 mark, reaching its lowest price since November 15 and breaking below the neckline of this pattern. This could lead to Solana retracing about 10% and testing its previous support area in the $200-210 range. Cryptocurrency analyst CRG also noted that there is a possibility of retesting these levels before a rebound to new highs.
SOL set a historic closing record in November
Despite recent pullbacks, some cryptocurrency observers still believe that the surge of Solana (SOL) is far from over, indicating that the token's performance and achievements throughout the cycle remain strong.
Crypto Jelle pointed out that after breaking the bullish triangle flag that lasted for 8 months in November and 'locking in a monthly breakout', Solana's price discovery pattern still points to a target of $400 to $600. Rekt Capital also stated that in November this year, Solana set a historic monthly closing price on candlestick charts, suggesting that the token's strong performance may not stop here. These analysts believe that despite the pullback, SOL's price still has the potential for further increases, especially when reaching the $400 target.
Additionally, Solana has shown a multi-year cup and handle pattern, breaking through the cup and handle trend line last month, which provides technical support for further increases in SOL. According to predictions based on this pattern, Solana may rise by 100%, with a target price of $400. Although SOL has dropped by 5.3% and 7.2% on the daily and weekly timeframes respectively, its increase over the past month has reached as high as 36.3%.
As of the time of writing, Solana is trading at $224, with daily trading volume increasing by 97%. This shows strong market sentiment, and investors remain optimistic about SOL's future performance.
