The Solana daily chart indicates a recovery from a recent downtrend, characterized by a series of higher lows forming a potential ascending channel. The local support level around $74.73 aligns with recent low points and a dynamic support line respected in recent price action. On the upside, resistance is noted near $99.59, forming a potential resistance zone with recent peaks.
Should the price continue adhering to the ascending trend line, a bullish scenario may unfold, targeting the upper boundary of the current channel for SOL/USDT. A decisive breakout above the $99.59 resistance level could prompt a retest of the psychological $100 mark, potentially paving the way for further gains toward the next notable resistance near $110.
On the flip side, a breach of the $74.73 support level could negate the optimistic outlook and indicate a bearish scenario. Should the price sustainably dip below this support, it could initiate a descent towards the $57.32 level, a more robust historical support. Continued weakness might lead to the price testing the $50 zone, a significant psychological and technical support level.
The notable pattern is an inverse double bottom, characterized by two clear troughs indicating a reversal from the prior downtrend. The neckline of this pattern is situated at the 0.04243 ETH level.
A validated breakout above this neckline has the potential to establish a target by measuring the distance from the neckline to the bottom of the troughs and extending that distance above the neckline.
Traditionally, the inverse double bottom pattern serves as a bullish reversal signal. Therefore, a decisive move by SOL above the neckline may imply a forthcoming rally in the SOL/ETH pair.