Solana’s(SOL)pricechartshowsthatthealtcoincouldbeonthevergeofa70%increase.InAugust,Solana’spricedroppedto$130.
Today,ithasclimbedto$168,indicatingthatapotentialbreakoutmayalreadybeunderway.ThisanalysisexplainshowSOLcouldrallybeyondthecurrentlevelsbeforetheyearends.
SolanaFormsBullishPatternontheWeeklyChart
Accordingtotheweeklychart,SOLhasformedacup-and-handlepattern.ThisfigureappearswhenthepriceexperiencesaU-shapedrecovery,resemblinga“cup,”followedbyaconsolidationphasethatlookslikea“handle.”
SinceMarch,SOL’spricehasbeenconsolidatingbetween$127and$201,indicatingthatthehandlereflectsindecisioninchoosingaspecificdirection.However,forthepatterntobevalidated,ithastobreakabovethemajorneckline.
Ifthisbreakoutoccurs,thepricecouldrisebyanamountalmostequaltothemaximumdistancebetweenthecup’stroughandtheneckline.ForSOL,thetokenhasbrokenabovethenecklineat$167.Therefore,thealtcoin’svaluemightriseby70%andpossiblyhit$285.
Readmore:7BestPlatformsToBuySolana(SOL)in2024
SolanaWeeklyPriceAnalysis.Source:TradingView
Besidesthis,theBullBearPower(BBP)onthechartshowsthatbullsareincontrol,andthepredictionmightcometopass.TheBBPshowsifthestrengthofbuyersisstrongerthanthoseofbullsorifbearshavetheupperhand.
Typically,anegativereadingmeansbearshavemoreimpactonthecrypto’sprice.Apositivereading,ontheotherhand,indicatesthatbullscanpushforapriceincrease,whichiswhatappearstobeinplay.
SolanaBullBearPower.Source:TradingView
AnotherfactorthatcouldpositivelyinfluenceSolana’spriceistheincreasinginstitutionaladoptionofthealtcoin.Recently,assetmanagementfirmVanEckincludedstakingforitsSolanaExchangeTradedNote(ETN)inEurope.
ThismovesuggeststhatSolanamightbethenextinlineforsignificantinstitutionalinterest,followingthenotableadoptionofBitcoin(BTC)andEthereum(ETH).
SOLPricePrediction:PotentialRallyto$176
Fromashort-termoutlook,Solana’spricehasbouncedabovethe$155support.Adropbelowthispointcouldhavetriggeredanotablecorrectionforthecryptocurrency,butsinceitdidnot,SOLcouldmovehigher.
TheFibonacciretracementalsoappearstobesupportingthismove.BasedontheSolanapricechartbelow,ifbuyingpressureincreases,thealtcoincouldjumptothe78.6%Fibonacciretracementlevel.Inthatscenario,thetokencouldhit$176.07,foreshadowinganotherhiketoward$194.08.
Readmore:Solana(SOL)PricePrediction2024/2025/2030
SolanaDailyPriceAnalysis.Source:TradingView
However,ifthepricedropsbelowthe61.8%Fiblevel,theforecastmightnotcometopass.Instead,SOLcoulddeclineto$142.06.
beincrypto.com