Following a brief market correction, the cryptocurrency sector started the week on a positive note. Bitcoin (BTC) and Ethereum (ETH) are showing gains, with altcoins like Solana (SOL) also performing well.
Solana, in particular, is showing promising signs of recovery. We have seen an increase of over 3% today and monthly gains reaching 18%. A detailed technical analysis reveals that SOL could still have short-term upside potential.
On the hourly chart, Solana is currently forming a bearish harmonic pattern known as a Cypher. This type of configuration is often used by traders to identify potential reversal zones, especially once the last leg, referred to as “CD,” is completed. Up to this point, prices tend to continue their upward trajectory, supported by bullish momentum.
The pattern began to form on May 23. SOL reached a short-term peak at $187.52, marked as point X, before experiencing a significant correction. The price dropped by over 9%, finding support near $169 on May 25, identified as point C.
Since this low point, Solana has rebounded and is now forming the CD leg of the pattern. According to harmonic theory, if this pattern confirms, the price could move towards point D, around $183.60. This corresponds to a Fibonacci retracement of 78.6% from leg XC. Compared to current trading levels near $177.50, this suggests a potential upside of about 3.43%.
The area around $183.60 will be a key level to monitor. Following the principles of harmonic trading, this zone often serves as a reversal area where sellers may re-enter the market. However, if Solana manages to surpass this threshold with strong volume and momentum, the rally could extend, targeting a full return to $187.52 – its recent high. This increase would represent a gain of about 5.60% from current prices.
Conversely, if SOL struggles to exceed the $183.60 level, it could indicate a weakening of the bullish momentum. In this case, the token may experience a consolidation phase or undergo some profit-taking before attempting a new upward move.
Either way, savvy investors will closely monitor Solana’s progress in the coming days, as current technical signals suggest interesting short-term upside potential.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
