Solana continues to oscillate between bullish and bearish momentum without a clear breakthrough in a specific direction. During this time, both resistance and support levels have been repeatedly tested, but no significant results have emerged, contributing to the formation of the head and shoulders pattern. With this development, Solana's price is currently heading toward one of two possible directions, both of which could have a significant impact on investors in this altcoin.
The head and shoulders pattern of Solana may trigger a rebound
Cryptocurrency analyst Melikatrader pointed out that Solana has completed the head and shoulders pattern on its daily chart. This pattern can develop in any direction, but for Solana, considering its recent price performance, it may signal a stronger bullish trend rather than bearish.
After completing the left shoulder and head patterns, the price is now looking at the neckline as the next decisive factor. As outlined by this cryptocurrency analyst, the neckline has been breached after the price fell below $160. What may happen next is that the price of Solana could rise and test this neckline again. If it can reclaim the neckline, it will trigger an upward trend and push the price toward $200.
There are also trend lines indicating that the price of Solana may be in an upward trend. So far, several higher lows have emerged, and regardless of current market sentiment, the presence of these lows remains favorable for the altcoin. If this continues, the likelihood of further increases will be higher.
The analyst further explained that given the head and shoulders pattern and the neckline breach, the price is more likely to start rising from here. As long as the momentum holds, the target price is set at $219.84. Otherwise, it could have a bearish impact on the cryptocurrency.
"Based on the pattern and technical analysis, the potential price target may be around $219.84, as indicated in the box at the top right," the analyst explained. "This target aligns with the continuation of the upward trend following the neckline breach."
The opposite scenario is that the price fails to hold the neckline. A reversal here could lead to Solana finding a better rebound point at a lower support level. In the bearish case, the support level of $136.34 will be worth watching, as it will provide the most buying opportunities.
