As a seasoned crypto investor with a knack for spotting trends and patterns, I find myself intrigued by Solana’s recent surge. Having weathered numerous market cycles, I can confidently say that the bullish flag pattern on SOL/USD daily chart is reminiscent of past successes. If history repeats itself, we might indeed see a rally to reclaim the all-time high of $264.63.
Currently, Solana’s (SOL) value has seen an increase, rising by approximately 5% within the last 24 hours. At present, the cryptocurrency is being exchanged at around $233.
Examining the daily graph of the coin suggests robust signs pointing towards a potential increase in bullish energy, implying that it could attempt to regain its previous record high of $264.63 (last observed on November 22). This analysis breaks down two key factors fueling this optimistic perspective and explains why Solana could potentially reach back to its historical price ceiling.
Two Key Reasons Solana May Extend Its Gains
Initially, there appears a bullish ‘flag’ formation on the Solana (SOL) to USD daily graph, with the coin’s value hovering near the top border of the ‘flag’ part of this pattern.
After a significant rise in the asset’s price, there emerges a bullish flag pattern characterized by a pause or consolidation phase, which looks like a ‘flag’ either slanting downwards or moving sideways. This pattern suggests that the asset might be temporarily halting before it resumes its potential increase in value.
In a similar fashion to SOL, when an asset’s price approaches the top limit of its “flag-shaped” consolidation phase, it indicates robust bullish energy, as purchasers consistently maintain the price within this range. A breakout above the upper border of the flag validates this pattern and is usually followed by a substantial surge that corresponds to the height of the preceding flagpole.
On December 11th, I observed that SOL rebounded from its Super Trend support at $212.50, and since then, it has surged by approximately 10%. This particular indicator I use, the Super Trend, helps me gauge the general direction and intensity of a price trend. The line on the chart changes color depending on the prevailing trend; green for an uptrend, and red for a downtrend.
When the Supertrend line falls beneath the current market value, it takes on the role of a supportive threshold, indicating a positive trend and implying that the price is likely to stay above this point. For example, if Solana’s (SOL) price adheres to this support level, it bolsters optimistic expectations and points towards further upward momentum.
SOL Price Prediction: Why a Break Below the “Flag Side” Is Dangerous
At present, SOL is being traded at approximately $233.09, slightly above the support established at $228.14. If the upper boundary of the bullish flag pattern’s consolidation range is broken successfully, the value of the coin could potentially surge toward its peak price of $264.63.
As a crypto investor, if I notice that the price of Solana coin dips below the lower side of a bullish flag pattern we’ve been watching, it could signal a change in the market sentiment. This dip might suggest that selling pressure has become stronger than consolidation, possibly shifting the momentum downward. If this happens, the Solana coin price could potentially drop to around $187.32.
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2024-12-12 18:43