The cryptocurrency market is showing signs of recovery following recent volatility, influencing trader sentiment positively.
Market Recovery
The cryptocurrency market continues to recover after recent fluctuations. Ethereum (ETH) briefly fell to $4,320 but then rebounded to around $4,575. This perception positively affects sentiment towards major altcoins, including Solana (SOL).
Solana's Harmonic Model Analysis
On the daily chart, Solana is forming a **Bearish ABCD pattern**. Despite its bearish classification, these setups often lead to a bullish CD-leg continuation before the market reaches its final Potential Reversal Zone (PRZ). The move began with a strong rally from Point A near $126.76 to Point B around $213, followed by a healthy retracement into Point C at $155.82, where buyers aggressively re-entered the market. SOL is currently trading at around $211, indicating the CD-leg is in full swing.
Outlook for Solana (SOL)
If bullish momentum continues, SOL may rise towards the $236.01 resistance zone. This area is expected to act as a significant profit-taking and potential reversal level, so traders should be prepared for possible short-term pullbacks upon reaching this level. Overall, the harmonic setup indicates further upside potential in the short term, with $236.01 being the next key target for traders.
The cryptocurrency market is displaying positive signals. Solana (SOL) has a strong chance of rising to the $236.01 level, warranting close monitoring by traders.
