Following the January gains, SOL price action has been sideways, with multiple corrections and bounce-backs. Nevertheless, Solana prices are still up 99% year-to-date. However, the recent correction from $28 warns of a steeper correction rally as the overall market feels the bearish pressure.
With the ongoing correction rally gaining momentum, the SOL price breaks under the multiple support levels. Moreover, the bearish pressure fractures the support trendline prominent in the 1-day chart.
During the 30% drop from the recent swing high, SOL price breaks below $20 along with a support trendline and the 38.20% Fibonacci level. The downtrend action creates a falling channel pattern and recently displays positive sprouting from the support trendline.
The short-phased recovery retests the broken support levels overnight with a 3.79% jump, creating an engulfing candle.
Currently trading at $19.92, the SOL price displays a post-retest reversal from the 38.20% Fibonacci level at $20.65. With an intraday loss of 1.63%, the Solana price may soon break under the base of the falling channel pattern.
Failing to sustain the golden crossover, the correction rally abruptly ends the growing trajectory of the 50 and 200-day EMAs.
As buyers struggle to rise above $20 or the 38.20% Fibonacci level, the SOL price may find the post-retest reversal gaining momentum. If the downtrend breaks below the support trendline, the SOL price may plunge to $16.42 or the 61.80% Fibonacci level.
On the flip side, a recovery rally above $20 will signify a positive cycle within the falling channel. This may improve the chances of an uptrend and reach the $23.60 mark.
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