According to Cointelegraph, Solana (SOL) is showing signs of a potential rally, with its bull flag pattern projecting a rise to $260. However, analysts are advising caution due to low spot buy volumes. Recently, Solana's price dipped from $184 to $160 but is now attempting to regain its position above the key resistance level of $180 for the second consecutive week. As Bitcoin (BTC) reaches an all-time high, market speculators are hopeful for a capital rotation that could drive major altcoins like SOL to new heights.
Solana's daily chart reveals a promising bull flag pattern following a strong uptrend. Currently trading below $180, a breakout above this level could push SOL towards an initial target of $200, with further potential to reach $220 if the momentum continues. The trend remains bullish, supported by a relative strength index (RSI) of 64.30, indicating healthy momentum without overbought conditions. However, for the rally to proceed, SOL requires a clear market structure break (MSB) or a decisive bullish breakout above $180. Declining volumes during the consolidation phase suggest caution, as insufficient buying pressure could hinder the breakout. Should SOL fail to surpass $180, the immediate focus shifts to the $140-150 range, with the bull flag pattern becoming invalid. This support range acts as a daily order block, providing higher time frame (HTF) support in the event of a price correction.
Crypto trader Robert Mercer has identified a price fractal pattern similar to October 2024, highlighting two critical zones: one from late 2024, where SOL broke past $180 after consolidation, and a current zone reflecting that setup. Mercer predicts that a breakout above $180 could trigger a sharp upward rally, akin to the late 2024 surge that saw SOL peak near $260. Similarly, technical analyst Javon Marks noted a hidden bullish divergence on Solana's 3-day chart, a pattern that previously led to a 1,332% increase in 2024. Marks suggests that if this pattern reemerges in 2025, Solana could reach a price target of $450. Popular crypto trader XO is also monitoring the situation, recommending waiting to see if Solana can convert the $180 level into support before considering a long position.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
Alex
