In 2023, Solana hit rock bottom and then sharply rose above $200 at the beginning of 2024, but it is currently around $140. An analyst suggested a potential breakout might be near for Solana. Crypto analyst RLinda commented that despite recent declines triggered by macroeconomic factors like the US unemployment rate and profit-taking activities, Solana is in a consolidation period tied to a significant upward trend. RLinda's technical analysis indicated that Solana's price could move from the current $147 level to $205.
Technical Analysis and Solana Comments
Solana's chart formation analysis, especially when examined in both daily and weekly time frames, provides specific insights into current price movements and future potential actions.
Looking at the daily chart below, it is evident that Solana is consolidating within a well-known triangle formation in the market, which typically indicates the continuation of an existing trend and is known to result in an upward movement.
As the price moves within this triangle, the resistance level of $162.45, marking the upper boundary of the formation, stands out as a significant level for further upward movement. A price movement above this resistance level could lead to a strong upward trend. Potential support levels at $141.20, $136.70, and $126.40 could indicate the extent of a correction in case of a pullback.
The 0.5 Fibonacci retracement level around $137 suggests that a correction might occur before an upward breakout, presenting a potential buying opportunity for investors.
Analyst's Solana Price Target
A broader analysis over a longer period highlights the triangle formation that has persisted for several months on the weekly chart, providing greater clarity. It is accurate to say that this formation aligns with the daily chart analysis and once again highlights the $162.45 resistance level.
According to the analyst's post, the levels of $188.32 and $205.20 are notable resistances that could emerge following the mentioned resistance. In a scenario where the price tests lower levels before a potential rise, $128.01 is seen as a strong support base in the analyst's chart.
