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Solana is termed as the Ethereum Killer and has gone through an intense period recently. SOL is currently trading at $143.76 but has gained 0.98% in last 24 hours and down by 9.50% in the last 7days alone. With a market capitalization of $67,5 billion Solana continues to be a major player in the crypto space.
The year began on a positive note for Solana as it shot upto $210, almost reaching its all-time high of $259 in March. However, this rally didn’t last long as there was a significant correction experienced by the market after recording $210 high. The recent crash of cryptocurrencies on August 5th saw SOL drop to as low as $109.
Amazingly enough Solana managed to bounce back immediately after that crash. In less than one week the price reached above $160 signaling strong token backing and investor confidence. Unfortunately though this recovery was not sustained and since then SOL has retreated back down to where it sits now at around $144
Based on technical analysis, Solana is currently in a Bullish Pennant pattern plus also in a bullish flag. This formation often precedes price movements with traders watching closely for breakout patterns. Next support level lies within Bullish pennant support which if held could act as a support zone for future gains.
Looking at key technical indicators, Daily RSI stands at 48 indicating that bears have slightly regained control . If SOL finds support at the pennant base the RSI may shows signs of strength which therefore leaves room for possible upward moves.
Daily MACD remains bearish according to the daily chart analysis showing no sign of crossing over soon unless SOL respects pennant support line which, however, may change very soon as speculated by some analysts. The expected MACD crossover in the near future could mark a swing in trend and potentially start a new bull run.
Bulls will then aim for $180 which is the next target if Solana holds onto pennant support and breaks to the upside where the pennant resistance lies. In fact, there are even more optimistic projections made by analysts on social media platforms like one recent tweet calling for an 11% breakout rally of SOL up to $165 from its current descending triangle pattern.
Weekly chart for Solana suggests long-term bullishness despite any short-term downside moves because of cup-and-handle formation that many technical analysts have identified also. If this pattern is confirmed however, it could give birth to an ambitious price target of $5,000 per one SOL. Although such assertions should be taken with a grain of salt, they do show some positive vibes surrounding Solana’s future growth.
Solana’s fundamentals still appear strong despite recent price volatility evidenced by trading volume reaching over $3 billion during post-crash recovery according to DeFiLlama data.
Since then though volumes have settled back down towards normal levels suggesting a period consolidation before large move higher again takes place.
