As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull runs and market corrections. The current surge in Solana (SOL) has piqued my interest, given its impressive performance over the past week.
On Friday, Solana (SOL) surpassed a significant resistance point, sparking renewed optimism among investors that had been building for over a week. Some analysts believe this could signal an impending major surge in value for the fifth-largest cryptocurrency by market cap, as “Uptober” draws near.
Solana Retests $160 Resistance
As an analyst, I’ve noticed that Solana’s upward trend began last week, fueled primarily by the U.S. Federal Reserve’s decision to lower interest rates. This market surge propelled Solana’s price past the $140 resistance level, transforming it into a strong support base instead.
Over the last month, Stellar Lumens (SOL) hasn’t managed to surge beyond a significant threshold, instead fluctuating between approximately $130 and $139. This stability has sparked concerns among investors and market observers, who fear that the cryptocurrency might be on the verge of a substantial price drop.
After a significant boost due to a positive factor, Solana experienced a 23% increase this week, surpassing the $150 threshold for the first time. Several experts believe that exceeding this point will drive the price further towards the following significant resistance level.
Over the weekend, I witnessed Solana surpassing a significant resistance barrier for the first time in a month, peaking at $160 for the first time since late August. At this very moment, Solana (SOL) has touched a daily high of $160.68, temporarily maintaining its position above the critical level.
This performance appears to have been boosted by the optimistic atmosphere caused by the early release from prison of Binance‘s founder Changpeng Zhao (CZ). The anticipation of his release ignited a positive outlook among investors in the cryptocurrency market, leading Solana (SOL) to rise by 4% within an hour and Bitcoin‘s price to reach $66,000.
Is SOL Price About To “Go Insane”?
crypto analyst Horn Harris observed the price movement of Solana on a weekly basis, stating it’s “hard to believe, almost unreal” at the moment. He emphasized that Solana’s Relative Strength Index (RSI) was tested appropriately and underwent an exact adjustment with its 50-day Moving Average (MA).
For the analyst, this performance indicates a strong possibility of the cryptocurrency surpassing its cycle’s high above $200 and aiming for even higher goals in the near future. WiseAnalyze implies that the Solana price is currently undervalued, suggesting that investors still have an opportunity to join the rising trend.
As a crypto investor, I’ve got my sights set on a potential final breakout at $400 for this cycle, but I’m keeping an open mind about it possibly reaching even higher levels. Nevertheless, I’m not dismissing the chance of a temporary rejection, which might lead to a pullback towards the robust support zones around $108 and $120.
Similarly to Matthew Dixon’s prediction, an analyst suggests that Solana may experience a retreat. This expert thinks a dip is imminent since several signs point towards a correction. Yet, it remains uncertain just how significant this pullback could be.
According to Dixon, the price targets for SOL could take the shape of either a pattern called “ABC” or “123,” but ultimately, it seems probable that there will be some degree of retracement.
A crypto expert known as the Byzantine General finds Solana’s price movement quite unusual. He has pointed out a potential Adam and Eve (A&E) double-bottom pattern in Solana’s chart, with the confirmation zone roughly around the $160 price level.
Given the current situation, there’s a strong possibility that Solana’s price might significantly increase. This is due to its potential to surge past the $200 resistance level, should it manage to regain a crucial support level first.
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2024-09-28 12:40