The price of Solana (SOL) hit a new all-time high of $264.39 during trading on Saturday (23). Since then, its price has corrected by 3%, causing the popular altcoin to trade at $255.12 at the time of writing.
Despite this pullback, the bullish bias towards the altcoin strengthens. An analysis of its daily chart highlights two reasons why a new Solana all-time high could be on the horizon.
Solana bulls remain strong
On the SOL/USD daily chart, the altcoin’s price is positioned above the green line of the Super Trend indicator. This indicator measures the overall direction and strength of a price trend. It appears as a line on the chart, changing color based on the prevailing trend: green signifies an uptrend, while red indicates a downtrend.
When the Super Trend line is above the price of an asset, it signals a downtrend, suggesting continued downward momentum. In the case of Solana, when the Super Trend line turns green and moves below the price, buyers are in control.
This green line often acts as a support level, where increased buying pressure can fuel a recovery after price drops. For Solana, this support is currently set at $213.53.
Solana Super Trend. Fonte: TradingView
Furthermore, the coin’s price is significantly above its Ichimoku Cloud, confirming this bullish outlook. This indicator tracks the momentum of an asset’s market trends and identifies potential support/resistance levels.
When an asset’s price is above the Ichimoku Cloud, it signals an uptrend. It indicates that the asset is in an uptrend with potential for further gains. In this case, the Cloud is a dynamic support zone below the price, reinforcing the bullish sentiment.
Solana Ichimoku Cloud. Source: TradingView
SOL price prediction: new record on the horizon
SOL is trading at $255, below new resistance at its all-time high of $264.39. If buying pressure increases further, the price of the coin will turn this level into a support floor and attempt to reach a new high.
Solana Price Analysis. Source: TradingView
On the other hand, if profit-taking activity resurfaces, SOL price will lose some of its current gains to trade at $231.35. If this level fails to hold, the coin will fall towards the support formed by its Super Trend indicator at $213.53. This will invalidate the possibility of a new all-time high for Solana in the near term.
The article Analyst Says Two Factors Could Lead Solana to New All-Time High was first seen on BeInCrypto Brasil.