Throughout the bull market, Solana (SOL) has been one of the leading cryptocurrencies, rising 66.8% in the last three months, hitting an all-time high (ATH) and surpassing other competitors. Despite SOL's impressive surge, it has recently lost the attention of altcoins like XRP, and a significant pullback could occur in the coming days.
Will Solana retest $200?
During this period, Solana has outperformed most of the market with an increase 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 surpassing that of Ethereum.
Less than a month ago, the cryptocurrency's bull market rebound propelled the altcoin past Binance Coin (BNB) to become the fourth-largest token by market cap. SOL's price rose to around $200, pushing its market cap to $88 billion on November 6.
Subsequently, its market cap surged nearly 20%, reaching $105 billion, but as other cryptocurrencies rose, SOL's momentum began to slow. On Sunday, XRP surpassed Solana and Tether (USDT) to become the third-largest cryptocurrency by market cap, while SOL rose to fifth place.
The milestone of XRP has raised concerns among some investors and market observers about SOL's future performance, as this cryptocurrency has retraced 14% from its recent high of $263 set 9 days ago.
Cryptocurrency analyst Income Sharks pointed out that Solana shows a bearish structure on its lower time frame chart. According to the post, after a breakout of the diagonal trend line three weeks ago, the altcoin formed a head and shoulders (H&S) pattern over the past month, indicating a trend reversal for Solana.
On Sunday night, SOL fell below the $230 mark, marking the lowest price since November 15 and dropping below the neckline of the pattern. This could lead Solana to retrace about 10% and test its previous support area in the $200-$210 range.
Similarly, cryptocurrency analyst CRG noted that there is a possibility of retesting these levels before rebounding to new highs.
SOL set a historic closing record in November.
Despite the recent pullback, some cryptocurrency observers believe that SOL's upward momentum is far from over, highlighting the token's strength and achievements throughout the cycle. Crypto Jelle noted that after breaking an 8-month bullish triangle flag in November and 'locking in the monthly breakout', Solana's price discovery pattern still targets $400-$600.
Similarly, Rekt Capital noted that the cryptocurrency set a historic closing price this November, marking the 'highest ever candle month close.' Other analysts have agreed, suggesting that investors should remain optimistic about a $400 target, as momentum remains strong.
Additionally, Solana has exhibited a multi-year cup and handle pattern, with a potential rise of 100% to a $400 target after breaking the cup and handle trend line last month. SOL has dropped 5.3% and 7.2% in the daily and weekly time frames, respectively, but rose 36.3% last month.
At the time of writing, Solana is trading at $224, with daily trading volume increasing by 97%.
