An intraday pullback in the cryptocurrency market shows a slight case of bullish exhaustion as Bitcoin dips below $58,000. Amid the pullback, Solana offers a buying opportunity with upside potential extending to $160 next week. Will this reversal lead to a massive comeback for the Ethereum killer? Let’s find out in this SOL price analysis.
SOL Price Performance
SOL price trend shows strong support at the $125 support area following the bullish recovery on the daily chart. Following the recent recovery over the weekend, Solana price has been trading sideways between $130 and $140 this week.
Following last night’s 2.74% surge and the formation of a bullish engulfing candle, an intraday pullback has put Solana on the back foot. Currently, it is trading at $134, posting an intraday correction of 0.97%, struggling to break above the $140 mark.
Despite the recent decline in SOL prices, its V-shaped reversal suggests that gains may continue this week.
Technical indicators:
MACD: The MACD indicator in the daily chart has a bullish crossover, and the positive histogram is surging.
RSI: Despite the stagnant SOL price action, the RSI indicator continues to move upwards.
Solana whales start to get scared
Amid rising volatility, the Solana giant recently redeemed a large number of SOL tokens. The redemption involved 106,213 SOL tokens worth $14.3 million.
Shortly after the move, whales deposited them on the centralized exchange Binance, and Solana increasingly believes that whales will sell these tokens, causing the supply to increase.
Solana’s 4-Hour Reversal
On the 4-hour chart, SOL price is showing a potential bottom reversal with the neckline at $138. Based on last week’s price action, Solana’s key resistance levels are located above the neckline at $147 and $160.
Meanwhile, key supports are found at $131 and $125. SOL price is at a crossroads as the recovery move is seeing sideways movement near the neckline.
Despite the recent whale selling, the overall sentiment on Solana remains bullish. An upside bullish breakout of $138 could cause the SOL price to jump to the next resistance at $147 with a greater chance of recapture the psychological $150 mark.
Moreover, next week’s FOMC meeting could boost the cryptocurrency market and increase Solana’s chances of hitting the $160 mark. On the other hand, the $131 support level is likely to remain strong this week.