Current Price Situation After Breaking New Highs
Solana (SOL) broke through a years-long resistance level on November 23, climbing to a peak of $263, successfully setting a new all-time high. However, market data shows that the asset's price has slightly retreated, dropping 1% and hovering around $253. Nevertheless, analysts remain optimistic, believing that based on two key indicators, it is likely to break through the current peak again.
Analysis of Bullish Dominance Pattern
Analysts point out that bullish forces dominate the Solana market, while bearish forces appear relatively weak. A detailed analysis of the daily price chart clearly shows that the current price trend is above the Super Trend indicator's green line. In technical analysis, this phenomenon has a clear interpretation: when the super trend line is below the price, it indicates that the market is under bullish control, and the green line serves as a reliable rebound support level for buyers, providing some technical assurance for further price increases.
SOL Price Under Ichimoku Cloud Indicator
Data indicates that Solana's bullish outlook has been further confirmed, with its price currently in a state of dropping below the Ichimoku Cloud. Analysts explain that this indicator is significant in measuring the momentum of asset market trends and can accurately determine potential support and resistance levels. From the relevant charts, it can be visually observed that the cloud area currently constitutes a support level for the asset. Meanwhile, reports indicate that many Solana investors are choosing to sell after realizing profits, which has somewhat driven the price up to its current level. However, if this selling trend continues, the asset price could further dip to $231.35. If bulls cannot successfully organize an effective rebound at this price level, Solana is likely to fall again to $213, which would make the possibility of reaching a new all-time high in the short term vanish.
On-Chain Activity and Analyst Predictions
Before this price pullback, independent on-chain analyst 'Titan of Crypto' boldly predicted based on the bullish pattern formed on SOL's monthly price chart that its price could rise to $400. He noted that the cup and handle pattern has a success rate of 95%, and the average profit margin after a breakout can reach 54%. This prediction aligns with recent reports mentioning SOL's vast growth potential.
DEX Trading Volume and Network Position Highlighted
Against the backdrop of a bullish outlook, Solana's decentralized exchange (DEX) trading volume has been impressive, setting a new weekly high of $41.2 billion.
In comparison, the trading volume peak from the previous week was only $18 billion, with about $17.5 billion in March 2024. More notably, its share of total trading volume not only surpassed networks like Base, BNB Smart Chain, and Arbitrum, but even Ethereum found it hard to keep up. Within just 24 hours, Solana dominated with an ultra-high share of 48.27% of total trading volume, while the second-place Base network held only 10.55%. In this regard, crypto researcher Aylo stated that if SOL can reach a new all-time high compared to BTC, it will achieve a goal that ETH failed to reach in the previous cycle. Even during the DeFi and NFT boom, ETH did not come close to its historical high compared to BTC set in June 2017.
The information provided in this article is for reference only and does not constitute any type of advice.