Solana SOL price has seen a considerable drop over the last week as the Cryptocurrency markets continue to bleed. While this descent might seem price bearish, it has allowed SOL price to reach an inflection point, allowing it a chance to make a price comeback.

Solana price looks ready for a recovery rally

Solana SOL price shed roughly 31% since January 2 and seemed to set a base at a weekly support level - price of $135.71. However, yesterday’s sell-off pushed SOL price below the said barrier and well below the 200-day Simple Moving Average at price of $135.16.

Buyers should note that the weekly support level and the 200-day SMA are inside the daily price demand zone, extending from $115.51 to $144.70 level. Hence, this cluster of support levels is a strong confluence that SOL bears are unlikely to sustain a breach.

Hence, market participants can expect Solana SOL price to kick-start a 25% uptrend to retest the lower limit of a daily volume supply zone, ranging from $169.79 to $179.19 level. The January 6 swing high at price of $154.32 might pose a temporary blockade, but SOL bulls are likely to push through it.

In some cases, Solana SOL price could retest the weekly resistance level at price of $174.37 present inside the daily supply zone, bringing the total climb from 25% to 28% level.

While things are looking up for Sol price, a four-hour candlestick pattern close below the daily demand zone’s lower limit at price of $115.51 will create a lower low. This development will skew the odds in the bears’ favor and invalidate the bullish price thesis for SOL. In this situation, Solana SOL price could revisit the $110.35 support level.

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