Solana (SOL) has been one of the leading cryptocurrencies in this bull market, rising 66.8% over the past three months to reach its latest all-time high (ATH), surpassing other competitors.
Despite its significant rise, SOL has recently shifted focus to altcoins like XRP, facing the risk of a significant pullback in the coming days.
Will Solana retest $200?
Solana has outperformed most of the market during this cycle, with a gain of over 231% last year. Its ecosystem has been a hot topic, with meme coins based on Solana leading the market narrative, and SOL's decentralized finance (DeFi) activity exceeding that of Ethereum.
Less than a month ago, in the bullish momentum of cryptocurrency, this altcoin surpassed Binance Coin (BNB) to become the fourth-largest token by market cap. The price of SOL rose to near the $200 range, bringing its market capitalization to $88 billion on November 6.
Since then, its market capitalization has soared nearly 20% to $105 billion, but with the rise of other cryptocurrencies, SOL's momentum has begun to slow. On Sunday, XRP surpassed Solana and Tether (USDT) to become the third-largest cryptocurrency by market capitalization, dropping SOL to fifth place.
This milestone for XRP has left some investors and market observers concerned about SOL's future performance, as the cryptocurrency has pulled back 14% from its latest all-time high of $263 set nine days ago.
Cryptocurrency analyst Income Sharks pointed out that Solana shows a bearish structure on its lower time frame charts. According to the post, after breaking through a diagonal trend line over three weeks, the altcoin has formed a head and shoulders (H&S) pattern in the past month, indicating that Solana's trend will reverse.
On Sunday night, SOL broke below the $230 mark, reaching its lowest price since November 15, and fell below the neckline of this formation. This may cause Solana to pull back about 10% and test its previous support area in the $200 - $210 range.
Similarly, cryptocurrency analyst CRG noted that it is possible to retest these levels before a rebound to new highs.
Solana welcomes a historic closing price in November.
Despite recent pullbacks, some cryptocurrency observers believe that SOL's upward momentum is far from over, emphasizing the strength of the token throughout the cycle and its achievements. Crypto Jelle pointed out that after breaking out of an 8-month bull flag pattern in November and 'locking in a monthly breakout,' Solana still targets $400 to $600 under its price discovery model.
Similarly, Rekt Capital pointed out that this cryptocurrency recorded a historic closing price in November this year, as it witnessed 'the highest entity monthly closing price ever.' Other analysts have also agreed, suggesting that investors should remain optimistic about the $400 target due to continued strong momentum.
Additionally, Solana is exhibiting a multi-year cup and handle pattern, with a potential 100% increase to a target of $400 after breaking out from the handle trend line last month. SOL recorded declines of 5.3% and 7.2% in the daily and weekly time frames, respectively, but has risen 36.3% over the past month.
At the time of writing, Solana's trading price is $224, with its daily trading volume increasing by 97%.
