As a seasoned analyst with extensive experience in crypto market analysis, I have closely observed the Solana price action over the past few months. The recent breakout from the 4-month long triangle consolidation pattern is an intriguing development that could mark the beginning of a new bullish phase for SOL.
During the recent stabilization in the crypto market over the weekend, the price of Solana has dipped by 0.77%, now trading at $172. This minor decline is expected to lead to a retest of the resistance line of its triangle pattern, which was breached following four months of consolidation. With an increase in on-chain metrics such as active addresses and total value locked, the latest surge in Solana could trigger a strong buying rally.
Solana Price Analysis As SOL Escapes 4-Month Consolidation
In the daily chart, the Solana price has remained relatively stable for the past four months, as indicated by the analysis. This period of price action is characterized by two trendlines converging, enclosing a series of lower highs and higher lows, forming a triangle pattern.
In theory, this price pattern is referred to as “regaining the lost bullish energy in an asset prior to its next surge.” During the market’s uptrend in July, Solana’s (SOL) price bounced back from the pattern’s lower threshold, which almost aligned with its long-term support at $121.
As an analyst, I’ve observed a significant shift in the Solana coin’s price trajectory, with a bullish surge of 41.3% that pushed the coin to trade at $172.2. Concurrently, the market capitalization of Solana experienced a notable rise, reaching a staggering $79.9 billion. On Friday, a pivotal moment unfolded when the rising price broke through the triangle resistance, indicating an end to the consolidation phase and potential for further growth.
Additionally, the Total Value Locked (TVL) in Solana has bounced back strongly, rising from $4.02 billion to $5.13 billion—a significant gain of 27.6%. This upward trend in TVL implies that more assets are being invested into the network, signaling growing confidence and heightened interest among investors.
Within the identical timeframe, the number of operational addresses on the Solana network experienced a significant jump from 1.44 million to 1.82 million, representing a noteworthy 26% growth. This notable increase in active addresses signifies enhanced user involvement and implies that an expanded community is now engaging with the Solana blockchain.
As a market analyst, I would interpret a sustained triangle breakout in Solana’s price chart as a potential catalyst for a significant price surge. If this trend holds, Solana’s value could potentially surpass its previous peak at $210 and push towards my initial target of $325.
If a triangle configuration is included in a larger pennant pattern formation, the potential price prediction for SOL according to some analyses could reach as high as $1420.
Technical Indicators:
Paraphrasing: The SOL coin’s market sentiment turns bullish when its price rises above the daily Exponential Moving Averages (EMAs), specifically the 20-day, 50-day, 100-day, and 200-day EMAs.
A daily Average Directional Index (ADX) reading of 22% showing an increase suggests that the ongoing market recovery carries enough strength to potentially trigger further price gains.
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2024-07-21 18:11