According to U.Today, Solana (SOL) has demonstrated resilience despite a sharp 20% price drop, sparking discussions about its potential to ascend in the cryptocurrency market. The price dip moved SOL toward the 100-day Exponential Moving Average (EMA), which played a significant role in the asset's rebound, highlighting the importance of EMAs as indicators of market sentiment.
The next support is expected around the historical $100 level and then at the 200 EMA, around $110. SOL's reaction to these thresholds could indicate its next move. A notable feature in Solana's chart is the double-top pattern formed before the latest correction. This classic technical formation often suggests a potential reversal from an uptrend, which has been evident in SOL's recent price action. The double-top pattern underscores the significance of the $115 level, now acting as a strong resistance.
However, if SOL consolidates above the 200 EMA support, there could be room for optimism. If SOL can maintain above the $110 level and aim for a break past the $115 resistance, it could invalidate the bearish sentiment originated from the double-top pattern and possibly set a course toward reclaiming higher prices. Chris Burniske suggests that while Solana has faced challenges, its abundance of meme coins that provide extremely high volatility can become a strong bullish case for it once again.