Despite hitting an all-time high of $264 on Nov. 23, Solana has yet to enter a price discovery period. The altcoin has been in a clear downtrend over the past 25 days, forming a series of lower highs (LH) and lower lows (LL) on the four-hour timeframe.
Even though SOL’s short-term outlook is bearish, its long-term chart suggests an impending rally, with multiple analysts predicting that the altcoin will hit new all-time highs.
Solana’s ‘Bullish Flag’ Fractal Predicts Price Rise to $300
As shown on Solana’s daily chart, the altcoin is repeating a bull flag fractal pattern from January 2024, which led to triple-digit gains in the first quarter of 2024.
The bull flag pattern broke out after 30 days, while the current pattern formed in the past 25 days. Moreover, other bullish confluence observed in both periods is the price retesting the 50-day exponential moving average (EMA) level (blue line) and the relative strength index (RSI) resetting below the 50 mark.
Considering Solana’s repeat bullish fractal breakout, the altcoin’s immediate target based on the 1.618 Fibonacci Extension is around $320. The long-term target of the 2.272 FIB Extension remains around $440.
Solana outperformed ETH for most of Q4. However, over the past 30 days, while ETH and BTC have gained 26.96% and 17.49%, respectively, Solana has lagged significantly with a return of just 1.61%.
Solana is testing its support levels against Tether’s USDt ETH and BTC trading pairs, further strengthening the possibility of a rebound.
Meanwhile, independent trader Zer0 dispelled fear, uncertainty, and doubt about SOL, calling its price action a “simple breakout and retest” of a previous resistance-turned-support range.
However, full-time cryptocurrency investor Daan Crypto stressed that SOL needs to break through $235 in the short term to confirm a bullish structure breakout (BOS) on the four-hour chart and establish a new higher high trend for the altcoin.