As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen my fair share of market cycles and trends. The current consolidation phase of Solana (SOL) is reminiscent of the 2021 bull run, where it soared to unprecedented heights.
Solana’s digital coin, SOL, is currently experiencing a period of consolidation after three intense weeks filled with high levels of volatility. This turbulence was characterized by substantial price increases followed by even larger decreases.
Regardless of the recent upheaval, Solana’s robustness keeps it in focus for analysts and investors, who are keenly observing its market fluctuations.
During this phase of strengthening, there’s increasing chatter about significant profits on the horizon. Some financial analysts even foresee Solana climbing back to its record peak of $260 by the end of the year, fueled by its expanding network and ongoing popularity.
SOL Technical Analysis
Top analyst and investor Jelle on X has recently shared a technical analysis chart that highlights a mid-cycle consolidation phase above the $130 mark. Jelle compares this phase to the consolidation period in 2021, which preceded an aggressive move up that took its price to new heights.
According to the graph, it’s possible that we might see substantial increases during this stage, as the analyst has projected a goal of $260 – which matches Solana’s past record high price.
According to Jelle’s assessment, it seems probable that the price will be tested around the $260 mark, especially if it manages to surpass the annual peak at $209. This level is significant as it serves as a potential resistance point. Overcoming this barrier might suggest the commencement of a new bullish phase.
Over the next few days, it’s important to see how Solana behaves as it strengthens further. This behavior will help us understand if the asset has the necessary force to reach new record highs. The community of investors and traders are on edge, eagerly awaiting a potential surge that could propel the price back up to its maximum values.
Price Action And Key Levels
Right now, Solana is being traded at approximately $158, sitting above its daily 200 moving average, which stands at around $151.33. This follows a substantial increase in the broader market on Friday, causing the price to rise by over 10% within two days. Now, this asset finds itself at a critical juncture as it examines nearby selling points.
To maintain its rising trend, the price needs to surpass the peak of $163.62 set on August 8th. Sustaining itself above this point suggests robustness and might pave the way for additional growth, possibly preparing the groundwork for reaching even higher records.
As a researcher observing Solana’s price movement, I anticipate that if it encounters resistance at $163.62, a temporary period of sideways trading could ensue. This suggests that Solana may stay within a defined range, moving up and down without a significant change in direction. The upcoming price action will be crucial in revealing whether Solana can continue its bullish trend or if it’s preparing for a longer consolidation phase before experiencing a strong push higher or lower.
Cover image from Unsplash, chart from TradingView
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2024-08-25 11:11