Originally published on: December 17, 2024
Solana (SOL) recently hit a record high of $264 on Nov. 23 but has not yet begun its price discovery phase. Despite a short-term downtrend with lower highs and lower lows in the four-hour timeframe, analysts anticipate a significant rally in the near future for this altcoin.
Although the current outlook for SOL may seem bearish, long-term charts suggest a breakout is imminent. With similarities to a bull flag fractal pattern from January 2024, experts predict a potential triple-digit surge in the coming months.
Comparing the recent bull flag formation to historical data, a breakout usually occurred after 30 days. The current pattern has been developing over the past 25 days, indicating a potential upwards trajectory. Key indicators such as the retest of the 50-day exponential moving average level and the relative strength index resetting below the 50 mark further support the bullish case for Solana.
Based on the 1.618 Fibonacci extension, the immediate target for SOL is around the $320 range, with a long-term goal of $440 at the 2.272 Fibonacci extension. Despite recent underperformance compared to Ether and Bitcoin, analysts remain optimistic about a possible “monster run” for Solana.
As support levels for SOL against USDt, ETH, and BTC trading pairs are being tested, signs point to a potential bounce in the near future. Analysts like Zer0 believe recent price action is simply a breakout and retest of prior resistance turned support levels. However, it will be crucial for SOL to break above $235 in the short term to confirm a bullish break of structure and establish a new higher high trend.
In conclusion, while short-term fluctuations in price may cause uncertainty, the overall outlook for Solana remains positive. Stay tuned for potential updates on SOL’s price movements and be prepared for a potential surge to $300 SOL in the near future.