Solana (SOL) has formed an extremely bullish reversal chart pattern on its daily chart. The price is showing signs of recovery after a recent downtrend, with a series of higher lows forming an ascending channel. The local support level is identified around $74.73, which has been respected in recent price action. On the upside, the resistance is near $99.59, forming a potential resistance zone with recent peak levels.
If the ascending trend line continues to hold, it could indicate a bullish scenario where SOL/USDT targets the upper boundary of the channel. A decisive breakout above the $99.59 resistance level could lead to a retest of the psychological $100 mark and potentially extend gains towards the next significant resistance near $110.
However, a break below the support at $74.73 could invalidate the bullish outlook and signal a bearish scenario. A sustained move below this support might trigger a decline towards the stronger historical support level at $57.32. Further weakness could see the price challenging the $50 zone, which is a substantial psychological and technical support level.
One crucial pattern to note is the inverse double bottom, which is indicated by two distinct troughs suggesting a reversal from the previous downward trend. The neckline of this pattern lies around the 0.04243 ETH level. A confirmed breakout above this neckline could project a target by measuring the distance from the neckline to the bottom of the troughs and extending that distance above the neckline.
The presence of the inverse double bottom pattern typically serves as a bullish reversal signal. Therefore, if SOL breaks above the neckline with conviction, we could see a rally in the SOL/ETH pair.