Solana Price Analysis: $210 Target Remains Strong Amid 8% Correction

As a seasoned analyst with over a decade of experience in the crypto market, I’ve witnessed countless bull runs and bear markets, and I must say, Solana’s current trajectory is quite intriguing. The asset’s resilience after such a massive crash is reminiscent of a phoenix rising from the ashes.


As an analyst, I’ve been closely observing the buzz surrounding Solana, a key player in the cryptocurrency sphere. After plummeting a staggering 96%, it’s now holding the fourth position by market capitalization. Interestingly, it has managed to break free from a bearish market structure, suggesting a potential shift in its momentum.

Solana Price Eyes a Bounce

The value of SOL is currently on an upward trajectory. It has surpassed a downward-sloping triangle pattern and is now above not only the 50-day moving average (represented by a green line), but also the 200-day moving average (depicted in black). This suggests a robust bullish movement. The recent candlestick formation bolsters this bullish assumption, as it follows the breakout from the downward triangle, and includes numerous large green candles, which signify significant buying activity.

At the moment, there’s a compact twin peak pattern emerging above a falling wedge, and the price is hovering near the neckline, approximately $169. A potential fall below this point could trigger a descent to the crucial support at $160 (50-day Moving Average). If the downward trend continues, Solana’s price might dip further to $138 (200-day Moving Average), located within the triangle. On the flip side, a rebound from the 50-day EMA could propel Solana’s price up by around 30%, reaching the next significant resistance at $210.

As a seasoned trader with over two decades of experience under my belt, I have learned to rely heavily on technical indicators like the Relative Strength Index (RSI) and Chaikin Money Flow (CMF). From my perspective, looking at the current readings, the RSI sitting at 62.35 suggests a strong bullish momentum for the asset in question, but it’s approaching the overbought region, which could indicate a slight pullback before further upward movement. This is not uncommon, and I have seen similar situations many times throughout my career.

Solana Price Analysis: $210 Target Remains Strong Amid 8% Correction

If Solana’s price drops below its 200-day moving average at $138, it could indicate market weakness, potentially causing the price to dip to a lower support level of $98. This bearish price action would contradict the current bullish outlook based on the triangle breakout pattern.

SOL On-chain Metrics Support a Bullish Scenario

Based on information from Solscan explorer, Solana’s current true transactions per second (TPS) is approximately 700, with a consistent transaction success rate of around 91%. This suggests that Solana has the capacity to accommodate more users, which could be favorable for the SOL price. In simpler terms, this means that Solana can handle many transactions quickly and successfully, potentially leading to increased demand for SOL.

Solana Price Analysis: $210 Target Remains Strong Amid 8% Correction

The increasing number of active accounts on Solana, peaking at a three-month maximum on July 31, 2024, suggests that more investors are flocking to this network. Consequently, it’s likely that the price of Solana will rise soon as well.

Solana Price Analysis: $210 Target Remains Strong Amid 8% Correction

As a researcher, I’ve observed an intriguing trend: The surge in the number of digital wallets on Solana’s platform has resulted in a 19.23% increase in Total Value Locked (TVL) over the past month. This growth suggests that new investors are becoming more confident and are actively channeling their funds into this network. This trend, in turn, is seen as positive for SOL, indicating a potential bullish outlook.

Solana Price Analysis: $210 Target Remains Strong Amid 8% Correction

If there’s a large decrease in transactions per second (TPS) within the network, this could trigger investors to exit, leading to potential mass departures. A decrease in activity might also weaken the Total Value Locked (TVL), potentially making Solana appear overpriced compared to its actual value, thereby undermining the optimistic on-chain argument.

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2024-08-01 13:38