Originally published on: December 17, 2024
Solana (SOL) recently hit a new all-time high at $264, but it has not yet entered a price discovery phase. Despite a short-term downtrend with lower highs and lower lows in the four-hour time frame, analysts are optimistic about a potential rally for the altcoin.
In the daily chart, Solana appears to be repeating a bull flag pattern from January 2024, which led to a significant rally in the past. The current pattern has been forming over the past 25 days and shows similarities to the previous breakout. Key indicators like the retest of the 50-day exponential moving average and the relative strength index resetting under the 50 mark further support the bullish case for Solana.
Analysts are setting price targets around the $320 range based on Fibonacci extensions, with a long-term target of $440. Despite recent underperformance compared to Ether and Bitcoin, some traders believe that Solana is gearing up for a massive rally in the near future.
Anonymous crypto trader Jelle mentioned that Solana is testing support levels against various trading pairs, indicating a potential bounce. Zer0, an independent trader, sees Solana’s recent price action as a positive breakout and retest, dismissing any doubts about the altcoin’s future performance.
However, full-time crypto investor Daan Crypto emphasized the importance of breaking above $235 to confirm a bullish break of structure in the four-hour chart and establish a new higher high trend for Solana.
While the future performance of Solana remains uncertain, the bullish indicators and historical patterns suggest that the altcoin could be on the verge of a significant rally towards $300 SOL. Stay tuned for more updates on Solana’s price movements and potential investment opportunities.