Why the Solana Coin Price Could Soon Hit Record High of $264.63
Solana (Sol) is on the rise again, rising 5% in the past 24 hours. As of this writing, the altcoin is trading at $233.
A look at the coin’s daily chart reveals strong bullish momentum, suggesting that a rally back to the all-time high of $264.63 (last seen on November 22) may be imminent. This analysis delves into the two factors driving this bullish outlook and explains why Solana may soon retest its all-time price peak.
Two Key Reasons Solana Could Expand Earnings
First, a bullish flag pattern has emerged On the SOL/USD daily chartand the coin’s price is trading close to the upper limit on the “flag” side of the pattern.
The bullish flag pattern forms after a strong price increase, followed by a period of consolidation that resembles a downward sloping or sideways “flag.” This pattern suggests that the asset is temporarily pausing before potentially resuming its uptrend.
Same as SOLwhen an asset’s price trades near the upper limit of the “flag” leg, it indicates strong bullish momentum as buyers keep the price within the consolidation range. A breakout of the upper flag line confirms the pattern and is often followed by a sharp rebound that mirrors the height of the previous flagpole.
Additionally, SOL rebounded from dynamic support provided by its supertrend indicator at $212.50 on December 11 and has since gained 10%. This indicator measures the overall direction and strength of price trends. It appears on the chart as a line that changes color according to the current trend: green indicates an uptrend, red indicates a downtrend.
When a supertrendline appears below price, it acts as a support level, signaling a bullish trend and indicating that price is likely to remain above that level. As is the case with SOL, if the price respects this support level, it will reinforce bullish sentiment and hint at continued gains.
SOL price Forecast: Why a break below the ‘flag’ is dangerous
SOL is currently trading at $233.09slightly above the support level formed at $228.14. A successful breakout of the upper limit of the bullish flag pattern’s consolidation range will propel the coin’s price to an all-time high of $264.63.
If the Solana token price falls below the “flag” side of the bullish flag pattern, the positive outlook previously predicted will be invalidated. Such a breakdown would indicate that selling pressure has exceeded consolidation and could shift momentum to the downside. in this case, Solana coin price may drop to $187.32.
Disclaimer
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