Key takeaways:
- Solana’s bull flag pattern projects a rally to $260, but low spot buy volumes have analysts advising caution.
After experiencing a brief dip to $160 from $184, Solana (SOL) is making an effort to regain its position above a key resistance level of $180 for a second consecutive week. Following Bitcoin’s recent all-time high, market speculators are optimistic about the potential capital rotation, which could propel major altcoins like SOL to new heights.
On the daily chart, Solana is exhibiting promising signs by forming a classic bull flag pattern after a notable uptrend. Currently trading under $180, a successful breakout above this price point could drive SOL towards its initial target of $200, with further upside potential extending to $220, assuming that momentum continues.
The overall trend remains bullish, supported by the relative strength index (RSI) at 64.30, indicating robust momentum that has not yet reached overbought conditions. However, SOL needs a clear market structure break or a decisive bullish breakout above $180 to initiate the next leg of the rally.
Given the declining volumes observed during the consolidation phase, caution is advised as insufficient buying pressure could hinder the anticipated breakout.
Should SOL fail to surpass $180, the immediate key area of interest would fall between $140 and $150, invalidating the bull flag pattern. This support range represents a daily order block and is likely to offer higher timeframe support in the event of a price correction.
Solana Price Fractal Targets $260
Renowned crypto trader Robert Mercer recently shared a chart illustrating a price fractal pattern analogous to that of October 2024. Mercer highlighted two crucial zones: one from late 2024, where SOL successfully broke past $180 after a period of consolidation, and another current zone mimicking that setup. He anticipates that a breakout above $180 could unleash a sharp upward rally, similar to the late 2024 movement which saw SOL peak near $260.
Additionally, technical analyst Javon Marks pointed out a hidden bullish divergence in Solana’s 3-day chart, a configuration that previously triggered a staggering 1,332% surge in 2024. Should this pattern manifest again in 2025, Marks believes Solana could reach a price target of $450.
Meanwhile, popular crypto trader XO remains vigilant for a long opportunity, suggesting patience to see whether Solana can convert the $180 level into a stable support.
This analysis emphasizes the potential for significant market movements in Solana but highlights the necessity for careful observation and strategic decision-making at this juncture.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
