Throughout the entire bull market, Solana (SOL) has been one of the leading cryptocurrencies, rising 66.8% in the past three months, reaching a new all-time high (ATH) and surpassing its competitors. Although SOL's rise has been remarkable, it has recently lost the attention of Altcoins like XRP, and a significant correction may occur in the coming days.
Will Solana retest $200?
During this cycle, Solana (SOL) has outperformed most of the market, with a gain of over 231% last year. The ecosystem has been a hot topic, with Solana-based memecoins leading the market narrative, and Solana's DeFi activity even surpassing Ethereum.
Less than a month ago, the cryptocurrency bull market rally pushed Solana past Binance Coin (BNB) to become the fourth-largest token by market capitalization. The price of SOL briefly reached around $200, pushing its market cap to $88 billion on November 6.
However, as other cryptocurrencies have risen, Solana's momentum has started to slow down. XRP surpassed Solana and Tether (USDT) on Sunday, becoming the third-largest cryptocurrency by market cap, while SOL fell to the fifth position.
XRP's milestone has caused some investors and market observers to be concerned about Solana's future performance, especially as SOL's price has retreated 14% from its latest high of $263 nine days ago. Crypto analyst Income Sharks noted that Solana is showing a bearish structure on lower time frames. According to the analysis, the Altcoin has formed a head and shoulders (H&S) pattern over the past month, suggesting a potential trend reversal for Solana.
On Sunday evening, SOL broke below the $230 level, reaching its lowest price since November 15 and breaking below the neckline of that pattern. This could lead to a Solana correction of around 10% and a test of its previous support area between $200-$210. Crypto analyst CRG also pointed out that these levels may be retested before a bounce to new highs.
SOL sets a new monthly close record in November
Despite the recent pullback, some cryptocurrency observers still believe that Solana's (SOL) uptrend is far from over, indicating that the token's performance and achievements throughout the cycle remain strong.
Crypto Jelle noted that after breaking out of an 8-month bullish pennant and "locking in a monthly breakout" in November, Solana's price discovery pattern still points to targets of $400 to $600. Rekt Capital also stated that in November this year, Solana set a historic monthly candle close, suggesting the token's strong performance may not be over yet. These analysts believe that despite the correction, SOL's price still has the potential for further upside, especially when reaching the $400 target.
Additionally, Solana is also displaying a multi-year cup and handle formation, having broken out of the handle trend line last month, providing technical support for further upside in SOL. According to the projections of this pattern, Solana could potentially rally 100%, with a target price of $400. While SOL has declined 5.3% and 7.2% on the daily and weekly timeframes, respectively, it has gained 36.3% over the past month.
At the time of writing, Solana is trading at $224, with a 97% increase in daily trading volume. This shows strong market sentiment, and investors remain optimistic about SOL's future performance.
