This has put Solana in an interesting position, and technical analysis shows its correction phase is constructive and could prepare the token for another breakout.
According to RLinda’s analysis, the ongoing correction is not a reversal but rather a consolidation stage and there’s likely going to be a liquidity test between $202.5 and $195.3. However, the analyst noted that the outlook will remain positive as long as buyers can defend the $200 level during this corrective move. This, in turn, will pave the way for a breakout from $200 up to $240.
On the other hand, the analyst also noted support levels at $202.5, $198, and $195.3. The overall expectation is that Solana could resume its bullish trading trajectory once the correction slows down and bounces at either of these levels.
At the time of writing, Solana is trading at $205, up by 1.6% in the past 24 hours.
Featured image from Getty Images, chart from TradingView
