As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous bull runs and bear markets across various asset classes. However, the current cryptocurrency market is unlike anything we’ve seen before, and Solana’s recent performance has caught my attention.
As a crypto investor, I’ve noticed that the cryptocurrency market seems to be gradually shedding its bullish drive, fueled by the U.S. election’s impact. Over the past weekend, marked by low volatility, Bitcoin‘s price faced selling pressure at around $77,000, indicating a possible retreat post-rally. Yet, crypto analysts are optimistic about Solana’s price, predicting a significant breakout from a bullish reversal pattern, given the surge in TVL (Total Value Locked).
As of the deadline for this report, Solana’s price stood at approximately $200.50, marking an increase of 0.45% during regular trading hours. According to data from CoinGecko, the market capitalization of this asset reached a staggering $94.58 billion, while its daily trading volume currently stands at a massive $4.3 billion.
Analyst Predicts Solana Breakout Next Week, Targeting $400 Rally
During this past week, there was a significant surge in the cryptocurrency market after Donald Trump’s triumph in the 47th U.S. Presidential election. The value of Bitcoin peaked at an unprecedented $77,200, and most prominent altcoins showed signs of revival as well.
Consequently, the value of Solana spikes significantly from $158 to $200, representing an increase of 28.8%. Notably, crypto analyst Pentoshi emphasizes this recovery by marking it with a large green candle on the weekly chart, indicating a possible breakout could occur in the coming week.
The chart attached by the analyst illustrates the formation of a bullish reversal pattern known as the Cup and Handle. The chart setup typically begins with a rounded “cup,” where the price gradually recovers after a decline, forming a U-shaped curve. This is followed by the “handle,” a brief consolidation phase or slight pullback.
Based on the Solana price forecast, buyers are nearly halfway to testing the pattern’s neckline resistance at approximately $210. If they successfully breach this resistance, it could catalyze a swift upward trend, concluding a prolonged accumulation phase that has lasted for multiple years.
The post-breakout rally could drive the SOL price 114% up to hit the $435 high.
SOL’s Growing TVL Highlights DeFi Revival and Price Momentum
As reported by DefiLlama, the total value locked in Solana (SOL) has bounced back significantly, climbing from $5.94 Billion to $7.15 Billion – a 20% increase. This surge indicates that more capital is flowing into Solana’s decentralized finance (DeFi) platforms, implying growing user engagement and confidence in its network.
As a crypto investor, I’ve noticed that when the price bounces back, especially after a significant increase in Total Value Locked (TVL), it often signals a prolonged period of recovery and even fuels an extended bull run.
Conversely, should the price of Solana face increased selling pressure around $210, buyers might find it challenging to hold their ground, potentially leading to a continuation of the sideways movement as sellers push back.
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2024-11-09 17:39