Solana (SOL) is on the brink of a potential breakout as it consolidates within a bullish triangle, setting the stage for a sharp move. According to seasoned analyst RLinda, Solana could soon reclaim the $200 resistance level.
Notably, Kaleo, another well-known analyst in the crypto space, has drawn parallels between Solana’s current price movement and Ethereum’s trajectory in late 2020, suggesting that SOL might be on the verge of a significant rally.
Despite recent market volatility fueled by macroeconomic factors such as the U.S. unemployment rate and profit-taking, Solana’s price action suggests that SOL is gearing up for another upward trajectory.
As of now, Solana is trading around $145, with its price fluctuating within a well-defined triangle pattern on the daily chart. This pattern is crucial, as it typically indicates the continuation of the existing trend—bullish in Solana’s case.
The upper boundary of this triangle, which sits at approximately $162.45, serves as a formidable resistance level for SOL price. A breakout above this point could signal a strong bullish continuation, potentially propelling Solana towards the $205 target that RLinda according to RLinda’s projected analysis.
The triangle formation on the daily chart is supported by similar patterns on the weekly chart, reinforcing the likelihood of a sustained upward move.
Solana Price Analysis
While the $162.45 resistance level is critical, it’s equally important to watch Solana’s support levels at $141.20, $136.70, and $126.40.
These levels provide a safety net in case of a pullback, helping to gauge the strength of any potential corrections. Notably, the 0.5 Fibonacci retracement level, located around $137, suggests that a brief correction could occur before Solana attempts to break out of its current consolidation phase.
This retracement zone could offer a strategic buying opportunity for investors looking to capitalize on Solana’s next upward move.
Additionally, the volume profile analysis indicates that there has been substantial trading activity within this range, creating liquidity zones that could either support or resist future price movements. This adds another layer of complexity to Solana’s price action.
Can SOL Hit $205 Price?
Looking at the weekly chart, a more extensive triangle pattern emerges, reflecting the same consolidation observed on the daily chart and spanning several months.
This long-term pattern aligns with RLinda’s analysis, emphasizing the significance of the $162.45 resistance level. If Solana can overcome this hurdle, the next significant resistance levels are identified at $188.32 and $205.20.
Breaking through these levels could set Solana on a path toward even higher targets, further solidifying its bullish outlook. As Solana navigates this critical juncture, all eyes are on whether it can break through the $162.45 resistance and push toward $205.
Kaleo’s perspective adds an intriguing layer to this analysis. He posits that Solana’s current behavior mirrors Ethereum’s just before its parabolic rally to ATH in 2020, which saw ETH climb from $308 to an all-time high of $4,878.
If Solana follows a similar path, it could see an extraordinary increase, with Kaleo speculating that SOL might reach as high as $1,000 during this bull cycle.
Source: https://www.thecoinrepublic.com/2024/08/15/solana-price-showing-similar-signs-to-ethereums-2020-rally/