Date: Mon, February 10, 2025 | 03:45 PM GMT
The cryptocurrency market has been facing significant pressure recently, largely due to Bitcoin’s rising dominance. Since December, Bitcoin dominance has climbed from 54.96% to 61.61%, leading to major corrections across the altcoin sector. Additionally, macroeconomic uncertainties, such as new trade tariffs, have fueled volatility in the market.
Amidst this challenging environment, Solana (SOL) has also experienced a 12% correction over the past 60 days. However, it is now showing signs of recovery, currently trading at $203, after bouncing off a key support level.
Source: Coinmarketcap
Ascending Triangle Setup:
According to prominent chart analyst Jonathan Carter , Solana is forming an ascending triangle pattern on the daily chart, which is often seen as a bullish setup. After testing the lower support of the triangle at $190, SOL has rebounded to its current price of $203.
The next key hurdle lies at the 50-day moving average (MA 50), which could act as a trigger for further upside momentum. A breakout above this level could confirm a bullish trend and attract fresh buying interest.
Solana (SOL) Daily Chart/Source: @JohncyCrypto (X)
If Solana manages to hold above the MA 50, the next price targets are set at $222 and $240. These levels represent key resistance zones that traders will be closely watching. A successful breakout could extend the rally toward mid-term targets at $262 and potentially $296.
On the other hand, failure to reclaim the MA 50 might result in further consolidation, with support around $190 remaining crucial for maintaining the current structure.
Final Thoughts
Solana is at a pivotal point in its price action. If buyers can push the price above the MA 50, it could signal the start of a stronger recovery, potentially reversing the recent correction. However, traders should also keep an eye on broader market conditions, especially Bitcoin dominance and macroeconomic trends, as they continue to impact sentiment across the crypto space.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
