Solana, the fifth largest cryptocurrency, may be on the verge of a significant price movement if a potential price pattern breakout validates. In this scenario, Solana's price might reach four digits, with the potential to rally by over 900%.
According to crypto analyst Ali Martinez, Solana might be eyeing the $1,000 price mark given a bullish pattern formation on its chart.
In his recent tweet, Ali presents a Solana price chart, highlighting the formation of the bull pennant. He notes that the early signs of a breakout are promising, indicating that Solana may be gearing up for a significant upward move.
#Solana is eyeing $1,000! Early signs of a breakout from a bull pennant suggest a potential 900% rally ahead. pic.twitter.com/DuFJF4h9dX
— Ali (@ali_charts) July 20, 2024
"Early signs of a breakout from a bull pennant suggest a potential 900% rally ahead," Ali noted.
A bull pennant pattern is a technical analysis formation that often precedes a strong upward movement in price. It comprises a price uptrend, followed by a consolidation phase where the price forms a small symmetrical triangle (the pennant). Once the price breaks out of this pennant, it usually indicates the continuation of the previous uptrend.
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In Solana’s case, the price action has formed a bull pennant, according to Ali, suggesting that a massive rally could be imminent. If this pattern breakout validates, Solana's price might climb by 900%, reaching the highly sought-after $1,000 milestone.
Solana price action
At the time of writing, SOL was up 2.74% in the last 24 hours to $172.90, and higher 20% weekly.
Solana's price has steadily risen since July 5, when it dropped to $121. In an earlier analysis, Ali spotted a "W" pattern on the Solana price chart, similar to a double bottom with a price target of $175.
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Solana reached an intraday high of $175.57 during today's trading session. If the rally sustains and the $175 barrier is successfully breached, Solana might aim for the $180 range and eventually $200.
This bullish outlook might be negated in the near term if the SOL price falls below the daily moving averages. In this case, Solana might resort to range trading or consolidation.
