Solana's price appears to be on the path to recovery despite the fluctuations in the market. A pennant pattern has been observed, indicating a potential steady increase in the future.

Despite the volatility in the market, SOL's price surged by 12% last week and formed a bullish pennant pattern after a retracement. The 24-hour trading volume for SOL has increased by 29%, reaching $3.5 billion.

Solana’s Price Movement Amid Bitcoin Consolidation

The cryptocurrency market has been experiencing increased volatility due to Bitcoin's consolidation around $70,000, leading to major altcoins trading sideways. Solana (SOL) has been affected by this uncertainty and has been moving laterally between two converging trendlines. This consolidation is evident in the formation of a pennant pattern on the 4-hour chart, a common occurrence after a significant rally.

On March 29th, SOL's price broke out bullishly from the triangle resistance, signaling a renewed optimism among traders. This breakout led to a 3% increase in price, with SOL currently trading at $196. Despite market fluctuations, Solana remains the fifth-largest cryptocurrency with a market cap of $3.57 billion.

Potential Rally and Market Sentiment

If the breakout continues, there is a possibility of a 21% rally in SOL's price, pushing it towards the $238-$240 range. Recent market activity has shown a resurgence in open interest for Solana, exceeding $3 billion, indicating growing confidence among investors and anticipation of potential price movements.

The 100 EMA slope on the 4-hour chart has been a crucial support for SOL buyers during market downturns, emphasizing an important level for buyers to protect. The Average Directional Index (ADX) slope has risen to 18% following the breakout from the pennant pattern, indicating that buyers have enough momentum to sustain a prolonged recovery.