A crypto analyst from World of Charts sees great potential for Solana (SOL) as it moves into a promising uptrend. The analyst points out the formation of a bullish pennant, a technical pattern often leading to significant price increases.
SOL’s price has been consolidating within a narrow range after a strong upward move. This consolidation has formed a bullish pennant pattern characterized by converging trendlines resembling a small symmetrical triangle. Typically, this pattern signals the continuation of the previous uptrend, indicating that SOL is building momentum for another upward breakout.
The analyst highlights a descending trendline, representing resistance, which has been tested several times, indicating weakening seller control. On the other hand, the ascending trendline, which provides support, shows buyers entering at higher levels, creating a higher low structure. The merging of buying and selling forces within the pennant reflects market uncertainty, typically leading to a significant price move that continues the previous trend.
Solana’s Bullish Price Predictions
The analyst underscores that confirming a clear breakout above the upper trendline of the pennant is crucial to validating the current bullish trend. This breakout is anticipated to propel SOL notably higher, aiming for approximately a 77% surge from its current price.
Furthermore, the volume profile observed during the consolidation phase reinforces the optimistic market sentiment. The declining volume trend within the pennant suggests that consolidation is nearing its end, and a surge in volume upon breakout would confirm the continuation of the bullish trend.
Price forecasts from CoinCheckup suggest that SOL might rise by 1.48% in the next week, potentially reaching $146.34. In the long term, Solana’s outlook is even more optimistic, with predictions of hitting $228.05 within a year, marking a 58.15% increase from its current price and showcasing its strong growth potential.
Moreover, renowned crypto analyst Crypto Cobra predicts that SOL could surge to $400 by late 2024 or early 2025. This forecast implies a possible 177% increase from its current value, reflecting widespread optimism about its future in the cryptocurrency market.
Related Readings | Solana’s Price Plunges 58%, Analyst Predicts $2,800 Surge Amidst Market Turmoil
