Originally published on: December 17, 2024
Solana (SOL) recently hit a new all-time high of $264 on Nov. 23 but has not yet entered a price discovery phase. Despite a short-term bearish trend with lower highs and lower lows, analysts are optimistic about a potential rally that could push SOL to new heights.
Looking at Solana’s daily chart, the altcoin is repeating a bullish pattern known as a bull flag, similar to one seen in January 2024 that led to a significant rally in Q1 2024. The current pattern has been forming for the past 25 days, resembling the breakout seen after 30 days in the previous bull flag. Other bullish indicators, such as a retest of the 50-day EMA and RSI resetting below the 50 mark, further support the possibility of a breakout in SOL’s price.
Analysts are eyeing the 1.618 Fibonacci extension level, which suggests a target price around $320 in the short term. Long-term projections indicate a target of $440 based on the 2.272 Fibonacci extension. Despite lagging behind Ether and Bitcoin in recent days, many traders remain bullish on Solana’s potential for a significant run.
While some in the crypto community have expressed doubts about SOL’s performance, analysts like Jelle and Zer0 believe that the altcoin is gearing up for a major rally. Jelle pointed out that SOL is currently testing support levels against various pairs, indicating a potential bounce in the near future. Zer0 dismissed concerns about SOL’s price action, attributing it to a simple breakout and retest of previous resistance turned support levels.
On the other hand, Daan Crypto emphasized the need for SOL to break above $235 to confirm a bullish break of structure and establish a new higher high trend. Overall, the outlook for Solana remains positive, with analysts predicting a strong rally towards $300 SOL in the coming days.
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