SOL Potential: Amid the Bitcoin Spot ETF craze, could it hit $150?
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Solana Price Prediction:
SOL is currently experiencing a brief decline before a rise that hits $150. Want to know the best entry point? Solana’s price has experienced a significant correction over the past two weeks amid market volatility surrounding the potential approval of a Bitcoin spot ETF. After reaching a new high of $126.36, the coin quickly fell by nearly 25% and is currently trading at $94.58. However, a closer look at the daily chart shows a bullish Flag pattern forming, suggesting the asset could soon rebound and attack higher price targets.
The retracement of the 38.2% Fibonacci level suggests that the overall trend for Solana remains bullish. If the price manages to break out of the Flag pattern in a bullish manner, it will signal that the short-term correction phase is coming to an end.
Solana's 24-hour trading volume was $3.3 billion, up 12%, showing growing investor interest. The late-December retracement from the all-time high of $126 found support at the 38.2% Fibonacci retracement level of $85. Despite the brief dip, the daily chart shows a low high low pattern, now forming a bullish reversal pattern known as Flag. This suggests that the current retracement may be a temporary pullback, providing an opportunity to replenish bullish momentum for the next advance.
As the market awaits news on a Bitcoin spot ETF, Solana’s price action and the emergence of a bullish Flag pattern provide potential signs of recovery and gains in the near term ahead.
The potential approval of a Bitcoin spot ETF this week could have a major impact on the entire market for the popular digital currency, including Solana (SOL), as it attracts investor interest amid rising Bitcoin prices. This favorable scenario could cause SOL price to break above the pressure trend line of the Flag pattern, providing buyers with a solid base to resume the uptrend.
Based on Fibonacci extensions, a spot breakout rally has the potential to push SOL up 58% to a $152 price target.
SOL vs BTC Performance Comparing the performance of SOL and BTC over the past three months, both are showing a bullish trend.However, there are significant differences in their recovery patterns. Solana (SOL) has experienced a stronger recovery, characterized by a significant retracement, providing favorable opportunities for pullback trading strategies. In comparison, Bitcoin exhibits a more stable and gradual upward trend, making it more suitable for breakout trading strategies.
Technical indicators, such as the 50-day exponential moving average (EMA), suggest that the EMA may continue to provide support for buyers during the pullback.
As for the Moving Average Convergence Divergence (MACD), the current bearish crossover between MACD and the signal line suggests there are no signs of an immediate reversal in SOL price.
Overall, the potential approval of a Bitcoin spot ETF could lead to significant opportunities for the entire digital currency market, including SOL. If approved, SOL’s price could surge and break above the Flag pattern’s pressure trend line, potentially reaching the $152 price target. Traders can consider a pullback strategy with the 50-day EMA as support while monitoring the MACD for signs of a trend reversal.
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