Despite reaching a new all-time high of $264 on November 23, Solana (SOL) has yet to enter a price discovery phase. This altcoin has been in a distinct downtrend for the past 25 days, forming a series of lower highs (LH) and lower lows (LL) on the 4-hour timeframe.
SOL/USD chart 4-hour | Source: TradingView
Although SOL's short-term outlook is somewhat negative, long-term charts show signs of an impending strong bull run, with many analysts forecasting a new all-time high for this altcoin.
Solana's "bull flag" pattern predicts a price of $300
As illustrated in Solana's daily chart, this altcoin is repeating a "bull flag" fractal from January 2024, which previously led to a three-digit increase in Q1 2024.
SOL/USD bull flag fractal chart, January 2024 and December 2024 | Source: TradingView
The previous "bull flag" pattern saw a breakout after 30 days, while the current pattern has formed over the past 25 days. Additionally, other bullish confluence factors observed in both periods include the price retesting the 50-day exponential moving average (EMA, the blue line) and the relative strength index (RSI) dropping below the 50 mark.
If Solana repeats this fractal pattern, this altcoin's short-term target will be at the Fibonacci extension level of 1.618, around $320. The long-term target based on the Fibonacci extension level of 2.272 is around $440.
Solana is poised for a "massive bull run", according to an analyst
Throughout most of Q4, Solana's price outperformed both Ether (ETH) and Bitcoin (BTC), according to data from Glassnode. However, in the past 30 days, ETH and BTC recorded increases of 26.96% and 17.49%, respectively, while Solana only achieved a modest gain of 1.61%.
This has led to mocking comments from the cryptocurrency community, but Jelle, an anonymous analyst, asserts that this altcoin is preparing for a "massive bull run."
The SOL/BTC, SOL/ETH, and SOL/USD pairs are testing support levels | Source: Jelle/X
Additionally, Jelle stated that Solana is testing support levels against USDt (Tether), ETH, and BTC, further reinforcing the possibility of a price rebound.
Daily chart analysis of Solana | Source: Zer0/X
Meanwhile, Zer0, an independent analyst, dismisses concerns and doubts surrounding SOL, arguing that the current price action is merely a "simple breakout and retest" at the previous resistance area, which has now become support.
However, Daan Crypto, a full-time cryptocurrency investor, emphasizes that SOL needs to break above the $235 level in the short term to confirm a bullish structure breakout (BOS) on the four-hour chart and establish a higher high trend for this altcoin.
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