Bulls have been maintaining a huge dominance in the rally ever since Solana price managed to rise above $100. The price failed to sustain above $200, forming a double top that resulted in a sharp drop below the local support at $130.
After a sharp decline of nearly 40%, the price has triggered a strong rebound, which indicates the possibility of a bullish pattern forming. Therefore, a sustained rise of more than 10% could start a new uptrend, and if the bulls show some strength, another bull run seems to be on the horizon.
Solana’s recent price action indicates that the buying power of market participants is increasing, while the willingness to sell and take profits is decreasing. From a technical analysis perspective, SOL price seems to be caught in a long-term downtrend, and the outlook continues to favor the bears. Although the downtrend line remains strong, the convergence of the moving averages suggests that a further correction could be imminent.
Will the correction last for a long time or will a potential medium-term recovery prevail?
The daily chart of SOL price shows that the coin has formed a double bottom pattern or a “W-shaped” pattern, which is largely considered bullish. The recent bounce showed a strong move to the neckline around $158.98.
This move could further spark a move to the overhead resistance zone between $175 and $195. However, the technical picture has turned slightly bearish, which suggests that minor consolidation could continue for a while.
The Gaussian Channel used to measure trends has just turned bearish, while the RSI continues to rise. This technical pattern supports sideways trading for a while, and after gathering some strength, it may soon rise to the temporary resistance level of $160.
At this stage, if the bulls show strength, a move to $200 could be imminent.
