Consistent with the broader pattern within the total crypto market, the Solana (SOL) value has fallen by 7.5% within the final 24 hours. Nonetheless, in response to famend analyst Rekt Capital, there isn’t a purpose to change to the bearish aspect.

In a latest technical analysis, the crypto analyst highlighted that Solana is at present exhibiting potential for an 80% value rally based mostly on its current consolidation sample. In accordance with Rekt Capital, Solana is buying and selling inside what seems to be a bull flag formation, as depicted on the weekly SOL/USD chart from Binance.

A Bull Flag sample happens after a powerful, nearly vertical value rise and is characterised by a downward-sloping consolidation that resembles a flag on a pole. The “pole” is fashioned by the preliminary value surge, whereas the “flag” represents a interval of consolidation with converging trendlines.

Merchants usually look ahead to a decisive breakout above the flag, which may sign the continuation of the prior uptrend. In Solana’s case, the analyst factors out that Solana not too long ago confronted a rejection on the high of the bull flag sample at $208, indicating a short-term setback in its upward trajectory.

“And if Solana retains this up, it could kind a Bull Flag right here earlier than breaking out to problem that Vary Excessive $208 resistance once more,” Rekt Capital famous.

Nonetheless, the underside of this bull flag, which stands at roughly $184, is recognized as a crucial help degree that must be maintained to maintain the bullish momentum alive. Ought to Solana handle to carry above this degree, the setup might favor the continuation of the uptrend.

Notably, Rekt Capital provides that whereas occasional dips or “wicks” into the $173 vary are acceptable, the value should usually stay above the $184 help on the weekly timeframe to validate the bullish outlook. The $173 value degree is marked by a blue horizontal line on the chart, serving as an extra help zone.

By way of value targets, the chart reveals an 80.57% potential rally from the underside of the bull flag (“pole flag”), which may translate right into a goal value of roughly $330 if the bull flag sample is confirmed within the coming days or perhaps weeks.

Solana Bears Acquire The Higher Hand On The Decrease Time Frames

On the decrease time frames, just like the 2-hour chart, the Solana value misplaced some momentum, indicating potential short-term consolidation or downward motion. SOL skilled a pointy -13% decline, breaking by means of a big upward trendline (black) that had beforehand offered help all through an ascending trajectory.

The value has sliced by means of the Fibonacci retracement ranges plotted from the swing low at $162.68 to the swing excessive at $204.19, at present hovering across the 0.618 Fib degree at $178.54. Usually, this degree serves as a powerful help zone, however a sustained break beneath may speed up losses towards the following ranges at 0.786 ($171.56) and doubtlessly the complete retracement at $162.68.

Quantity indicators present a marked enhance in promoting strain through the value dip, which substantiates the present bearish momentum. Moreover, the Relative Energy Index (RSI) has plummeted to 29, teetering on the sting of the oversold territory. This means that sellers are in management, but in addition raises the potential of a aid bounce if the RSI dips additional into oversold circumstances and triggers a reactive shopping for response.