The price of Solana (SOL) has retested the $220 level for the first time since November 2021. This has sparked more speculation that the altcoin could be on track to set new all-time highs.
Notably, SOL charts across multiple time frames support this view. The key indicators supporting this prediction are detailed below.
Solana forms a bull flag pattern, expecting a sharp rebound
The altcoin’s price recovered to $200 on November 13. However, Solana’s sharp rise above $220 in the past 24 hours was a result of Robinhood’s decision to relist the token.
With the latest developments, Solana broke out of a bull flag on the weekly chart. A bull flag is a pattern characterized by two rallies separated by a brief period of consolidation. The pattern begins with buyers overpowering sellers, with a sharp rise in price (the “flagpole”), followed by a pullback that forms parallel upper and lower trendlines, forming a “flag.”
As shown in the chart below, SOL broke out of a bullish flag pattern and touched $220 before falling to $217.52 recently. If the technical pattern remains intact, the price of Solana could break through the all-time high of $260, with a medium-term target of $320.83.
Furthermore, daily chart analysis also supports this view, especially considering the current state of the Bull-Bear Power (BBP) indicator.
The BBP indicator assesses the strength of buyers (bulls) relative to sellers (bears) by measuring the difference between the highest price and the 13-period exponential moving average (EMA). When the Bull Power Indicator is above zero, it indicates that buyers are holding prices above the EMA, indicating positive momentum.
But if the opposite happens, it would suggest that sellers have pulled the price below the EMA, which is bearish. Therefore, the current state of the indicator (shown below) suggests that bulls can continue to push the price of Solana higher.
SOL Price Prediction: Double-Digit Gains Possible
Meanwhile, another look at the daily chart shows that Solana’s breakout could continue. The Parabolic Stop and Reverse (SAR) indicator suggests this.
The Parabolic SAR indicator helps traders identify trend direction and potential price reversals. When the indicator places dots above or below the price, it suggests that the trend is down. But in this case, it is below the price of SOL, indicating that the uptrend may continue.
Historically, when this happens, Solana’s price tends to move higher. For example, as shown below, when this happens, the altcoin almost always records double-digit gains. Therefore, if history repeats itself, then SOL could climb to $260 in a matter of days.
If validated, this could accelerate the rise to $320.83 as mentioned above. On the other hand, this prediction could be invalidated if the dotted line of the Parabolic SAR is above the price of SOL. In this case, the value could drop below $200.
