Solana price ready for a 36% rebound

Solana (SOL) has been caught in a correction since September 9. Bears have been in control for the past few days, but bulls have taken over as price action in Solana has rebounded off a pattern trend line that was the main driver for the bullish run that lasted for almost a month.

Solana price is turning in favor of the bulls who can break the dictating descending trend line

Solana price action is consolidating for the second day now. SOL price is getting pushed against the R1 monthly resistance level at $148.91. That the resistance level holds importance has been proven at the beginning of September. First, it did its job as resistance, but after a clear break to the upside it got turned into support and has been doing that since September 7. Although it got broken on the rapid move on September 14, it still looks to have some importance short term. With the lower highs and the R1 holding, a descending triangle looks to be formed for now.

Although this element would sound like a favor for the SOL bears, it is instead a signal that bulls are ready to charge in full force. On September 14, buyers jumped in on the opportunity to go long at the purple tilted trend line. That line acted as a launch platform for the leg higher in Solana at the beginning of September. A  closer look at the chart will show that this setup was repeated before and after, with each time new highs in Solana prices.

SOL/USD daily chart

The red descending trend line is under attack with buyers present, with already two heavy attacks in the past two days. If buyers can push through, another pack of buyers waiting on the sideline will step in and provide the necessary fuel to ramp price action back up. A retest of $221.38 looks to be the only real target for Solana then, which would serve as a 36% profit target.

Bears will try to defend the red descending trend line. If they succeed in that, expect a break lower through the triangle's base with a retest again of the purple tilted trend line. When that does not hold as well, near $140, expect a retrace to the 50% Fibonacci level at $121.67.