Solana Surges Through Pivotal Range; Can It Reach $160 Following a 10% Jump?

Ever since the Solana price managed to rise above $100, the bulls have maintained a huge dominance over the rally. The price failed to sustain itself above $200, which formed a double top, resulting in a drastic plunge in the local support below $130. After a huge downfall of nearly 40%, the price has triggered a strong rebound, which flashes the possibility of forming a bullish pattern. Therefore, a continued upswing of over 10% may begin a fresh ascending trend and if the bulls display some strength, another bull run appears to be imminent. 

The recent price action of Solana has shed light on the growing buying power of market participants with less desire to sell and extract profits. Looking at the technical analysis, the SOL price appears to be stuck within a prolonged downtrend, and the outlook continues to favour the bears. Although the descending trendline is holding strong, the convergence of EMAs suggests further corrections could be on the horizon. 

Will the correction last long or a potential mid-term recovery prevail?

The above daily chart of SOL price displays the token forming a double bottom pattern or the ‘W-shape’ pattern, which is largely considered bullish. The recent rebound displays the price strongly ascending towards the neckline at around $158.98. This move could further trigger a rise towards the upper resistance zone between $175 and $195. However, the technicals have turned slightly bearish, which suggests a minor consolidation could prevail for a while. 

The Gaussian channel, which is used to gauge the trend, has just turned bearish while the RSI continues to rise. This technical formation supports the sideway consolidation claim for a while and after gathering some strength, a rise to the interim resistance at $160 could be imminent. At this stage, if bulls display strength, a rise to $200 could be imminent.