Solana’s (SOL) Price Surge: Why Analysts Are Eyeing $300

TLDR:

• SOL currently trading at $176.58 with market cap of $82.92 Billion
• Technical indicators show bullish signal similar to one that preceded 415% price increase in 2021
• Solana flipped Ethereum in 7-day fees for first time, reaching over $25 million
• Price broke out from 217-day resistance trend line
• Multiple analysts project potential rise to $300 range based on technical analysis

Solana (SOL) has broken through a key 217-day resistance level, trading at $176.58 with a market cap of $82.92 billion. The breakthrough comes as multiple technical indicators align with bullish market sentiment, leading analysts to project potential price targets around $300.

The cryptocurrency recently eth sol fgefor the first time, generating over $25 million in network fees. This development marks a key shift in network usage and adoption metrics for the blockchain platform.

Market analyst Eugene Ng Ah Sio points to several factors supporting the bullish outlook. A substantial reduction in futures Open Interest during October indicates decreased speculative long positions, potentially creating room for new buyers to enter the market after the upcoming U.S. election.

I usually don’t full stack something like this so aggressively, but a couple of factors came to confluence yesterday.

1. OI got pretty much wiped from speculative longs put on in October.

2. I already believed that most people intended on de-risking into elections a week or so… https://t.co/UFuzCJq3U2 pic.twitter.com/waJEUuC0a2

— Eugene Ng Ah Sio (@0xENAS) October 26, 2024

The current market dynamics show an accelerated de-risking process ahead of the November 5 U.S. elections. While this could lead to temporary volatility, analysts suggest it may provide clarity on market positioning earlier than anticipated.

Technical analysis reveals that Solana’s price has successfully converted a six-month resistance level into potential support. This technical development suggests strength in the current price movement, with the newly established support level offering possible entry points for traders.

The price movement from $120 to $175 over the past two months represents a 46% increase. The daily Bollinger Band indicator suggests high momentum in the current rally, with potential for an additional 4% increase before challenging the bull flag’s resistance trendline.

On the technical side, the Moving Average Convergence/Divergence (MACD) has made a bullish cross, while the Relative Strength Index (RSI) maintains position above 50. These indicators mirror conditions last seen in August 2021, when SOL experienced a 416% price increase.

A major bullish trend line has formed with support at $152 on the daily chart. The price has climbed above the 61.8% Fibonacci retracement level of the decline from the $194.32 swing high to the $109.79 low, suggesting potential for continued upward movement.

The cryptocurrency’s network activity has seen increased adoption through the emergence of AI meme coins. Projects like Goatseus Maximus (GOAT) have chosen Solana as their preferred blockchain, contributing to enhanced network usage.

Looking at immediate price levels, resistance sits near $178, with the first major resistance point at $185. A clear move above $185 could open the path toward $194, followed by the psychologically important $200 level.

Support levels show strength at $162, marking the recent breakout zone. Below this, the $152 level coincides with the bullish trend line and the 50-day simple moving average, forming a crucial support zone.

The price action since August has shown consistent strength, with SOL bouncing from the $125 horizontal support area and creating a higher low in September. Last week’s bullish candlestick formation occurred despite broader market decline, demonstrating relative strength.

Wave analysis suggests completion of wave four, with price movement entering wave five of a long-term increase that began in December 2022. The breakout from the descending resistance trend line and symmetrical triangle supports this analysis.

Price targets based on Fibonacci calculations suggest a lower target of $237, derived from the 1.61 external retracement of wave four. A higher target of $305 emerges when projecting wave five to match the length of wave one