Solana Eyes Previous ATH As Top Analyst Says “Market is Poised For Action Post-Halving”

Solana is capturing significant attention as top analysts predict the crypto markets are gearing up for substantial post-halving action. This optimistic sentiment is emerging amid broader market anticipation of Bitcoin re-testing its previous all-time high (ATH) of $70,000, which is expected to fuel increased market activity. Solana, known for its speed and low transaction costs, is poised to benefit from this bullish environment.

In the last 24 hours, the SOL price has risen by 0.6%, even as the total cryptocurrency market cap dipped by 0.6%. Meanwhile, Bitcoin is trading at $67,803, marking a 0.9% increase, reinforcing cautious optimism as traders eye a potential breakout for Solana.

What Analyst’s Prediction Means For Solana

Macro Researcher Axel Adler Jr. shared his thoughts on X, noting that the market is poised for action post-halving. An analysis of Bitcoin price behavior following its four halving events shows that it experiences exponential growth after each halving due to reduced supply and heightened demand. 

Historical Halving Growth

• 1st Halving (2012): Bitcoin surged 9,000% in the bull run that followed, marking the transition of BTC from a niche asset to a widely recognized investment.
• 2nd Halving (2016): BTC experienced a 2,800% increase after this halving, reaching its then-peak near $20,000 by late 2017.
• 3rd Halving (2020): Bitcoin saw a 714% rally following the most recent halving, topping around $69,000 in late 2021.
• 4th Halving (April 2024): Historically, the price tends to surge after halving. Growth projections suggest a similar or slightly moderated percentage gain compared to past halving cycles.

Adler is convinced SOL could benefit from the overall positive market sentiment expected post-halving. Due to its high throughput and low transaction costs, Solana has positioned itself as a leading blockchain platform. The network’s ability to handle thousands of transactions per second makes it an attractive option for DeFi applications and NFTs.

SOL has only participated in one Bitcoin halving before (2020), and 36 days after the halving, SOL price began its ascent, rising 36,923% in 504 days. The Solana macro chart shows a pattern similar to the one that ignited the 2021 bull run and is forming and close to a breakout. 

If the SOL price breaks out of this pattern, Solana could surge much higher than its previous all-time high of $260.

SOL Price Analysis: Bullish Reversal Pattern Confirms Bull Run

The SOL price chart indicates a bullish reversal pattern known as the Inverse Head and Shoulders (H&S). The head formed in late September at around $125, and the two shoulders formed near $135 and $145.

This pattern signals that a new uptrend could start after a breakout above the neckline, which is near the $155-$160 range.

The price is currently testing the neckline of this pattern around $153-$160. A breakout above $160 with strong volume would confirm this pattern, likely pushing SOL to the next target levels.

Key Support and Resistance Levels

• $130 level: Aligns with the low of the head formation and provides a solid demand zone.
• $160 level: This is the neckline resistance. Once breached, it could trigger a rally toward the previous all-time high.

Solana price prediction shows the asset is about to break a long-term downward trendline. The breakout would confirm a bullish shift in the crypto market structure and trigger the beginning of the bull run expected to last through 2025.

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.