Originally published on: December 17, 2024
Solana (SOL) has reached a new all-time high at $264 on Nov. 23, but has yet to enter a price discovery phase. The altcoin has been on a downtrend for the past 25 days, forming lower highs and lower lows in the four-hour time frame.
Despite the short-term bearish outlook, analysts are predicting an imminent rally for Solana. The altcoin’s daily chart shows a repeating fractal pattern resembling a bull flag from January 2024, which resulted in a triple-digit surge in Q1 2024.
The current bull flag pattern has been forming over the past 25 days and is showing similarities to the previous breakout pattern. Analysts are targeting the $320 range as the immediate target based on the 1.618 Fibonacci extension, with a long-term target of $440 on the 2.272 FIB extension.
While Solana has lagged behind Ether and Bitcoin in recent days, analysts remain optimistic about its potential for a significant rally. Despite some skepticism from the crypto community, analysts like Jelle believe that Solana is gearing up for an “absolute monster run.”
Technical analysis shows that Solana is testing support levels against various trading pairs, indicating the possibility of a bounce in the near future. Analysts like Zer0 are confident that SOL’s recent price action is a simple breakout and retest, while others like Daan Crypto emphasize the importance of breaking above $235 to confirm a bullish trend.
As Solana continues to show bullish signals and potential for a significant surge, investors are keeping a close eye on this altcoin for the next big move.
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