Solana Price Prediction: Analyzing the Current Scenario
Solana’s price has been oscillating between the demand area at $140 and the supply area at $150, with indications of an imminent rectangle pattern breakout that could fuel FOMO towards the $200 mark.
The Current State of SOL
SOL, the token powering one of the industry’s leading layer 1 protocols, is currently hovering at $148 after facing resistance at $150 in its recent push for new 2024 highs. Signs of consolidation or sideways trading suggest a potential breakout towards the coveted target of $200.
With a modest 3% increase in the last 24 hours, Solana’s market capitalization stands at $65 billion, accompanied by a trading volume of $5.5 billion.
SOL’s Bullish Rectangle Pattern Breakout
The climb to $150 is fueled by positive market sentiment, aligning with the movement of most altcoins in tandem with Bitcoin’s new all-time high above $72,000.
Examining the four-hour chart reveals a new pattern for Solana, characterized by explosive moves to new levels followed by consolidation before another significant breakout. Key levels include support at $140 and resistance at $150, forming a bullish rectangle pattern.
The ongoing oscillation within the rectangle presents an opportunity for investors to re-accumulate SOL for potential long-term gains. Breaking the $150 barrier could trigger FOMO, leading to a substantial rally with a target of $200.
A bullish rectangle pattern suggests that, following sideways trading, Solana has the potential to continue its previous vertical trend. Traders should plan for a move as significant as the width of the rectangle. In a bullish market, Solana might experience a parabolic move.
Despite seller congestion at $150, the current path of least resistance indicates a balance between demand and supply, contributing to the consolidation within the rectangle.
The Relative Strength Index (RSI) at a neutral 57 hints at a potential trend reversal by breaking the trendline resistance. This could catalyze the next move in SOL price, enticing more investors to consider buying the token before it closes the gap to $200.
Support and Potential Setbacks
If a setback occurs below the rectangle pattern, the 50-day Exponential Moving Average (EMA) at $139 is expected to absorb selling pressure before bears take control. Further declines could lead to key support levels at $135, $130, and $120.
The 200-day EMA reinforces the demand area at $120, suggesting that SOL may not overshoot this area during the bull market, potentially avoiding a retest of the $100 level and below.
