Investors are eyeing the investment opportunities presented by Solana’s recent price drop. Over the weekend, while Bitcoin encountered resistance at $67,500, Solana (SOL)’s price fell by more than 2% to $169. However, this has not dampened investors’ confidence in its rebound potential, especially on the back of Solana’s strong performance earlier this month.
🔸 Solana’s Recovery Momentum
In the first three weeks of May, Solana surged 50% from $112 to $168. Now, as the new week begins, investors are hoping that the recent decline will trigger a new round of gains. This positive trend, characterized by strong higher lows, shows that investors are still actively accumulating during market pullbacks, which may provide favorable conditions for buyers.
In addition, the rising price has formed an inverted head and shoulders pattern, a technical pattern that is often interpreted as a bullish sign, indicating that Solana may have hit a bottom. This technical pattern further suggests that if the cryptocurrency can maintain current levels, it may continue to rise.
🔸 SOL’s Key Pattern
On May 17, Solana’s price managed to break through the $160 resistance level, which further confirmed its bullish trend. If this trend continues, buyers have the potential to push the price up to $210, a potential increase of up to 24%. However, Bitcoin’s stable performance below $67,600 has put some supply pressure on Solana, resulting in SOL’s price only slightly rising to $169.
This minor pullback may test Solana’s stability above $160, laying a solid support foundation for its future appreciation. But if the price falls below this key level, the current bullish outlook may be questioned and may cause Solana’s price to fall back to $138. Therefore, Solana’s future trend will depend on whether it can maintain or exceed the current support level.
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