The Solana price is trading at $129 with a positive bias as of 2:30 am EST. SOL has been sealed in a downtrend over the last week, with 12% weekly losses. Market participants are expecting a sustained uptrend for the smart contract token as it trades in a highly bullish chart pattern in a lower timeframe.
SOL has had an impressive run in 2024, posting more than 27% gains from the Jan. 1 opening of $101 to set a swing high at $210 on March 18. This was followed by a steep fall that saw the token lose 42% of its value to seek solace from the buyer congestion zone at $120 before sharply recovering to the current.
This price action led to the appearance of a V-shaped recovery chart pattern on the four-hour chart, as shown below. This bullish technical formation has seen the SOL price flip two resistance levels into support at $120 and $125.
This support-resistance flip suggests a change in market sentiment from bearish to bullish, with the previous resistance level capping the price movement, becoming a new support level from which the price may seek defense.
Traders may consider entering long positions when the price successfully retests the neckline of the prevailing chart pattern at $145. Above that, the bulls will be bolstered to send SOL higher toward the $160 range high. Such a move would represent a 23% uptick from the current price.
TradingView Chart: SOL/USD
On the other hand, a rejection from the current level could see Solana price drop below the $125 psychological support. If this level fails to hold as support, the altcoin could slump to retest the support provided by the $120 buyer congestion zone.
In highly bearish cases, the SOL price could descend below the $119 swing low, which would invalidate the bullish thesis.