Cryptocurrency markets saw the altcoin market pause its recovery momentum over the weekend as Bitcoin (BTC) faced resistance at the $67,500 level. With Bitcoin experiencing a slight 0.2% decline, Solana (SOL), the fifth-largest cryptocurrency, saw a sharper drop of more than 2%, currently trading at $169.
Recovery Process in Solana
However, investors view this decline as a chance to recover following the strong rise at the beginning of the week, potentially allowing buyers to restart the recovery as the new week progresses. The first three weeks of May were quite bullish for Solana (SOL). The cryptocurrency’s price rose from $112 to $168, marking a 50% growth.
This recovery, characterized by a strong higher low, may indicate that buyers are accumulating during market dips and signal a shift in market dynamics. The rising price also formed an inverse head and shoulders pattern, which could indicate a bottom formation for Solana.
Critical Formation in SOL
On May 17, SOL price broke the $160 neckline resistance, confirming the bullish trend. If the mentioned pattern continues, buyers could push the post-breakout rally to $210, representing a potential 24% gain. However, with the leading cryptocurrency Bitcoin stabilizing below $67,600, SOL faced general supply and its value rose to $169.
This minor pullback might be retesting the sustainability of the token above $160, providing a solid support level for a higher rise. Conversely, a break below the neckline could invalidate the bullish outlook and potentially pull Solana back to $138. As a result, due to Bitcoin’s resistance, Solana fell 2% to $169, but investors expect a recovery. SOL, having broken the $160 resistance, could either sustain its rise or drop to $138.
