Sahil Mahadik
Solana Price Prediction: The SOL price is witnessing the last pullback before driving a rally to $150; when should you enter?
Published 6 hours ago
Solana Price Prediction: Amid the recent market uncertainty surrounding spot Bitcoin ETF approval, the Solana price witnessed a notable correction in the last two weeks. From the new local top of $126.36, the coin price has plunged nearly 25% to currently trade at $94.58. However, a look at the daily time frame chart shows this correction has led to the development of a bullish Flag pattern which indicates the asset will rebound aiming for higher targets
Flag Pattern Could Resume Recovery in SOL Price
- A healthy retracement to 38.2% FIB reflects the overall trend of this asset remains bullish.
- A bullish breakout from the flag pattern will hint at the end of the correction end
- The 24-hour trading volume on the Solana coin is $3.3 Billion, indicating a 12% gain.
The parabolic growth in the fifth-largest cryptocurrency Solana entered a new correction when the price peaked at $126 in late December. This pullback had recently plunged the price to a low of $85, which coincides with the 38.2% Fibonacci retracement level.
However, a steady lower-high, lower-low formation in the daily time frame showcased the formation of a bullish reversal pattern called FLAG. Following this pattern, the current retracement could be a temporary pullback to replenish the exhausted bullish movement pattern and prepare buyers for the next leap.
If the spot Bitcoin ETFs is approved this week, the altcoin market will receive a significant inflow along with the BTC price. This could bolster the SOL price to breach the overhead resistance trendline of the flag pattern, offering buyers a suitable springboard to resume the recovery trend.
As per the Fibonacci extension, the spot-breakout rally could surge the altcoin by 58% to hit a potential target of $152.
SOL vs BTC Performance
Source: Coingape| Solana Vs Bitcoin Price
Over the past three months, both Solana and Bitcoin have exhibited bullish price trends. However, a distinct difference is observed in their recovery patterns. Solana (SOL) experienced a more vigorous recovery, marked by significant retracements that are advantageous for pullback trading strategies. On the other hand, Bitcoin, the leading cryptocurrency, demonstrated a steadier and more gradual upward trend, which is more suitable for breakout trading strategies.
- Exponential Moving Average: The 50-day EMA could continue to offer pullback support to buyers.
- Moving Average Convergence Divergence: A bearish crossover state between the MACD and signal reflects no sign of reversal yet in SOL from a price perspective.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
