How Much Could Solana Price Rise This Week?

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As a seasoned crypto investor who has witnessed the rollercoaster ride of the digital asset market over the past few years, I can confidently say that Solana (SOL) looks primed for a breakout this week. The recent dip in its price from a key resistance level might seem disheartening to some, but it’s important to remember that every good rally has its minor setbacks.

In the last 24 hours, the value of Solana (SOL) has demonstrated a bullish trend, fluctuating between $247.09 and $234.15. As we speak, Solana is being traded at $237, representing a decrease of about 1.08% from a significant resistance point.

Despite this minor retracement, analysts predict that Solana could be on the cusp of a breakout this week, potentially setting a new all-time high.

Will Solana Price Rise This Week?

The current upward trend in Solana’s price appears to be supported by improving on-chain statistics, pointing towards a favorable outlook for this cryptocurrency. As per data from Coinglass, the Open Interest (OI) for Solana hit an all-time high of $5.45 billion just a few days ago. This surge suggests enhanced liquidity and influx of fresh investments into the Solana market, which often signals robust buying interest.

Furthermore, DefiLlama data indicates that Solana’s weekly trading volume reached an all-time high of $41.60 billion around mid-November, the highest since 2020. This represents a significant increase from the $18.14 billion traded a week prior. The surge in trading activity implies increased market engagement and faith in Solana’s ecosystem.

As an analyst, I’m observing that Solana recorded a significant milestone by generating approximately $49.64 million in transaction fees over the past week. This new record underscores the escalating network activity, which strengthens the platform’s positive trajectory. The surge in both trading and development engagement with the chain is evident, indicating a robust and thriving ecosystem.

SOL Technical Indicators Point Toward ATH

Based on technical analysis of Solana’s price charts, there seems to be a strong possibility that the upward trend will continue. Notably, experts have spotted a bullish cup-and-handle pattern on Solana’s monthly chart, which typically has a 95% success rate in predicting further price increases. As per Titan of Crypto’s analysis, once Solana surpasses its previous record high, it might potentially soar towards $400.

In the short term, we’ve pinpointed potential resistance levels at $260 and $278. If these levels are surpassed, it could lead to an upward trend. The support level holds firm at $220. Experts predict that Solana’s price will reach between $360 and $400 once it overcomes its current resistance.

According to cryptocurrency analyst Aylo, a positive trend indicates that Solana could surpass Ethereum in performance. Aylo made this observation.

As a crypto investor, I find myself pondering over the potential of Solana (SOL) reaching a fresh all-time high against Bitcoin. If this happens, SOL would have accomplished something that Ethereum couldn’t achieve during the previous market cycle – outperforming Bitcoin in terms of price growth.

Bullish Pennant Formation Signals Further Gains

A key bullish indicator for Solana price lies in its technical chart, which displays a bullish pennant pattern. This pattern, formed after a strong upward price movement followed by a consolidation phase, typically signals the continuation of the previous uptrend.

A surge beyond the upper limit of the pennant, corresponding to the $260 resistance point, might spark a new surge in Solana’s value. Experts anticipate that this development could propel Solana towards the $290-$300 zone. Yet, if the price can’t maintain its position above the pennant’s lower boundary at $220, this bullish perspective might not hold true. However, a decrease in the Relative Strength Index (RSI) below its signal line with a score of 53 suggests that the bullish trend could be weakening.

Furthermore, the MACD (Moving Average Convergence Difference) line in blue has crossed below the signal line, indicating a potential downtrend or bearish reversal in the ongoing bull rally. Additionally, the histogram has moved into negative territory, suggesting an increase in selling pressure due to growing concerns about possible further declines in Solana (SOL) prices.

More Crypto Online, a crypto market analyst, commented,

If Solana manages to break through the $260 barrier decisively, the bullish pennant pattern indicates that the price increase might reach unprecedented heights.

Analysts Eye Key Levels for Breakout

Market observers are keeping a close eye on Solana’s price because it is close to significant resistance points. As per More Crypto Online, a crypto analysis firm, Solana appears to be moving according to a 5-step pattern and may potentially reach $360 in the upcoming months. They also mentioned that if Solana falls below $212, it could indicate a larger decline, but the general trend still looks optimistic.

Additionally, historical price trends suggest that the Solana (SOL) price may mirror its 2021 surge, potentially leading to substantial increases. As Miles Deutscher, a crypto market analyst, suggested on Twitter, “The current trajectory of Solana seems similar to its 2021 pattern, which might propel it to around $780 in the future.

Even though the present price is currently under its record peak of $260, financial experts anticipate that surpassing this mark might trigger swift price escalation, potentially reaching $276 and even higher levels.

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2024-11-20 03:48