Solana (SOL/USD) has been talked a lot about after the huge rally that started in late October which took the price from $138 to $260 in under a month. Solana then started its correction after forming a bearish divergence and has now corrected by over 25%. Solana is now showing signs of a reversal after closing 10% higher on Friday and investors are now looking for opportunities to buy Solana as a new all-time is expected soon.

A closer look at this year's charts-

• After a breakout in October Sol started a sharp rally and no corrections were seen until the $260 mark was seen, thus the correction now could last longer and it could take some more time before a continuation of the rally is seen.

• High selling volumes were seen earlier this week thus investors should be cautious as Solana could fall further.

• Solana has corrected to the 0.618 Fibonacci level and also gave a strong closing at the support on Friday which is pointing towards a reversal.

• The $180 mark is a very important demand zone for Solana and any long entries should be avoided if the zone is broken.

• The RSI has bounced from the support and has now started increasing which is suggesting that a reversal could be seen now.

• Investors can wait for Solana to close in green a few more times on the daily timeframe to confirm the reversal and can take long entries.

• If a reversal is seen Solana could set a new all-time high very soon however investors must be cautious and enter only once a reversal is seen.

• A stop-loss can be set below the zone at $170.

Conclusion

Solana is a very strong coin fundamentally and could be very bullish in the coming weeks if a reversal is seen, investors can also expect a new all-time high once a reversal is seen. However, investors must be patient and wait for a clear reversal before entering any long positions.