Solana recently triggered a new correction by retreating from nearly its highest level of the year at $126.36. Over the past three days, the cryptocurrency’s price has fallen by 21.6%, revisiting the psychological $100 level in parallel with the 23.6% Fibonacci retracement level. What are the expectations in the cryptocurrency markets?
SOL’s Trading Volume Decreases
Solana’s 24-hour trading volume is at $4.49 billion, which translates to a 1% loss. Over the last four months, the SOL price has shown a notable recovery. The price rose from the mid-September low of $17.3 to $126.2, recording a 626% growth. With a market value of $46 billion, Solana (SOL) is positioned as the fifth-largest cryptocurrency.
After gaining momentum in the second half of December, the Solana price formed a local peak at $126.36 and retraced to the $100 level at the 23.6% Fibonacci retracement level. This convergence created a high area of interest (AOI) and led to a 6% price increase today, forming a bullish engulfing candle. Theoretically, a retracement to this FIB level can be considered healthy for buyers to regain strength and continue the recovery rally.
SOL and BTC Consolidation
A potential rebound from the mentioned support could increase the SOL price by 16.6%, challenging the high resistance level of $126.36 again. A breakout above this level would better confirm the continuation of the uptrend and could push the price to potential targets of $143 and then $177.
Solana’s short-term outlook shows a strong bullish trend, while the ongoing consolidation in the largest cryptocurrency, Bitcoin, continues to create an uncertain sentiment in the market. If the SOL price drops below the $100 level, cryptocurrency holders can mark critical support at $84 and $72, corresponding to the 38.2% and 50% Fibonacci levels, respectively. Any correction below 50% could start to reflect weakness in the buyers’ conviction.
