As a seasoned crypto investor with several years of experience under my belt, I’ve learned to pay close attention to technical analysis and market trends when making investment decisions. The recent surge in Solana’s price, which has jumped over 33% in the past two weeks, has piqued my interest.
The price of Solana has experienced a significant jump of over 33% within the past two weeks. Crypto analyst Ali Martinez (@ali_charts) indicates that this rise could be an early sign of a more substantial upward trend. In the weekly chart (SOL/USD), there is a noticeable bullish pattern emerging, potentially leading to a price increase surpassing the $1,400 threshold.
Is $1,400 Next For Solana?
Martinez drew attention to a “bull pennant,” a well-known technical chart formation indicating potential strong price growth for Solana within the next few months. Excitedly, he remarked, “This overlooked ‘bull pennant’!”
Based on my extensive experience in technical analysis and having closely monitored the cryptocurrency market for several years, I believe the chart depicts a bull flag pattern. This pattern is characterized by a sharp upward trend followed by a consolidating downward channel. After observing this pattern form, I’m reminded of the time when Bitcoin experienced a similar movement before its monumental surge in late 2017.
As a researcher studying stock market patterns, I can tell you that the flagpole in a bull flag pattern is established during the initial steep price increase. Subsequently, a consolidation phase occurs, which is symbolized by a series of higher lows and lower highs that converge into a narrowing point. This narrowing point indicates decreasing volatility and tightening price ranges, often signaling an impending price breakout.
Based on Martinez’s assessment, the Solana price currently hovers at $157.98, which is right under the upper boundary of the channel. During this period, the coin has been consolidating within a narrow range, and the trend lines defining the upper and lower boundaries are clearly visible and set to converge shortly. The crucial support level, as identified during the consolidation phase, lies around $130, while the resistance level is slightly above the current price, approximately at $160.
As an analyst, I would interpret the bull flag pattern in the following way: If this pattern holds true to its historical significance, a breakout could occur once we reach the peak of the two converging trend lines. Traditionally, the potential target for a bull flag breakout is calculated by determining the length of the flagpole and then projecting that distance upward from the point of the breakout or from the underlying support level (as a more cautious approach). In SOL‘s case, this would equate to over 1,000% in potential gains.
Based on Martinez’s chart analysis, a possible price target for Solana could be over $1,400. In a less optimistic outlook, it might still hit a minimum of $1,300.
Key Resistance Levels For SOL
As we advance toward our significant price objective, there are various hurdles and intermediate targets to surmount in the near term. The 0.618 Fibonacci retracement level at $163 holds the greatest importance. Often referred to as the “golden ratio,” this resistance level is currently receiving considerable attention.
Following that, the 0.786 Fibonacci level at $205 should be kept in mind as potential final resistance for the price before it potentially reaches the November 2021 record high around $260 once more.
If the price of Solana goes beyond its previous peak, the Fibonacci extension levels provide additional potential prices for Solana to reach. Notably, the 161.8% extension, which is at $415.23, serves as a significant objective for early price exploration.
In a robust trend, levels such as the 261.8% extension at $666 and the 361.8% extension at $918 hold significant importance. Noteworthy is the fact that the 423.6% extension projects a price increase for Solana only up to approximately $1,074.
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2024-07-19 14:10