Price Analysis of Solana: SOL, a token empowering one of the famous layer 1 protocols in the industry of finance, oscillates around $148 after reaching new heights of $150 in 2024. Ahead of the anticipated breakout towards the $200 mark, signs of consolidation or sideways trading prevail.
In the last 24 hours, Solana’s price has boasted a modest 3% increase, securing a prideful position in the market capitalization at $65 billion, with trading volume pointing towards $5.5 billion.
The surge in Solana’s price: SOL’s persistent bullish pattern breakout at $150 could be attributed to optimistic sentiments in the market. Most altcoins are surging alongside Bitcoin, which recently surpassed a new temporary high above $72,000.
According to the four-hour chart, Solana exhibits movement in a new pattern where it tests new levels, followed by a period of consolidation before another significant breakout.
Two key levels, $140 serving as support and $150 as resistance, delineate a rapid formation of a sustained pattern.
The ongoing consolidation presents an opportunity for investors to accumulate Solana for potential gains in the long term. Overcoming the barrier at $150 could ignite a significant rally, with FOMO potentially propelling it towards $200.
A swift and sustained pattern implies Solana’s capability to sustain the prevailing trend after sideways trading. Initially, traders should aim for as much width in consolidation as possible. However, given the bearish market sentiment, Solana might exhibit a parabolic move.
Apart from the crowd at $150, there’s no clear direction either upward or downward. In other words, demand and supply are relatively balanced, explaining the melancholy in consolidation.
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Relative Strength Index (RSI) at 57, neutral against the resistance line, indicates readiness for a potential reversal. A reversal could trigger the next move in Solana’s price, prompting more attention towards buying the token before the difference closes at $200.
In the event of a downward break from the sustained pattern, the 50-day Exponential Moving Average (EMA) stands strong at $139, attempting to absorb selling pressure before reaching the bears’ territory.
In case of a downturn, attention will be on the next support levels, expected at $135, $130, and $120. The 200-day EMA provides reinforcement at $120, suggesting that during a bear market, this area won’t likely overshoot the $100 mark and below for reassessment.
