With Solana (SOL) failing to recover a major resistance area, a market watcher suggested that the cryptocurrency is poised to retest the November lows. However, some analysts predict that the era of altcoin consolidation may end soon.
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Solana Rejected in Key Area
On Friday, Solana faced a nearly 4% correction after trying to find a key resistance point for the second time this week. The cryptocurrency has been trading between the $120-$145 price range since the early November correction, hitting its lowest point in the past three weeks.
During the crypto-star market rally of the year, SOL jumped more than 13% from its yearly open, breaking out of a three-month slump and hitting a one-month high of $143.4 earlier this week.
After being rejected at the upper border on Tuesday, the altcoin is now trying to build a base below the $140 level, where the cryptocurrency has faced strong resistance in the past three months.
Despite this attack, Market watcher Crypto Batman predicted that SOL may return to the downside in November as a reversal pattern appears to be forming in its one-day period.
In the post of X, the analyst noted that the altcoin was denied a strong resistance area, asserting that the top of the area has been formed. As a result, the cryptocurrency’s next support area is near the $128-$130 area, where its unfilled bullish Fair Value Gap (FVG) is located.
Crypto Batman also revealed that Solana had the ability to create an inverted Head and Shoulders pattern from the Q4 fix. According to the chart, the cryptocurrency formed patterns on the left shoulder and head during the pullback of November and December, with a neckline around the $145 area.
In addition, the recent rejection may indicate that the right shoulder has started to form, which will see the price decline until the end of November before retesting the neckline of the pattern and possibly breaking if the formation is confirmed.
Is SOL Rising?
Market watcher King Arthur shares Solana’s positive outlook, asserting that the altcoin is “finally waking up.” He confirmed that “We’ve been watching that long downward slide for a long time, and it’s great to see SOL finally breaking out of that falling channel. This is a big first step, but let’s stay sharp.”
As he explained, breaking the level of $143 is important for Solana’s continuation, as it will open the door to recover the level of $152, which was lost during the disruption of November 13.
“If we can do that, I can say that the uptrend is officially back with my eyes on $171.55,” he asserted. However, he warned that a drop below the $133 area would suggest that the price is not ready for a bullish continuation.
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Meanwhile, the analyst of Crypto Jelle indicated that Solana could not challenge the psychological barrier of $200, cutting below this level a few months ago. He suggested that its recent performance is starting to match the price action of BNB.
“I’m starting to feel like BNB. Next to what feels like forever – then, a sudden increase again. (…) Waiting for the same result,” he concluded.
As of this writing, Solana is trading at $134.9, down 2.3% in the daily time frame.
Featured image from Unsplash.com, Chart from TradingView.com
