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Friday, June 21, 2024

Solana Price Forecast: Can $SOL Reach $150 Amidst Spot BTC ETF Buzz?

Solana Price Analysis: Amid ongoing market volatility linked to the approval of the spot Bitcoin ETF, the Solana price experienced a significant downturn over the past fortnight. Falling from its recent peak of $126.36, the coin’s value has dropped by approximately 25%, currently resting at $94.58. Nevertheless, a scrutiny of the daily time frame chart reveals the emergence of a bullish Flag pattern following this correction, suggesting a potential rebound with an upward trajectory toward higher price targets.

Potential Resumption of Recovery in SOL Price Indicated by Flag Pattern

  • Robust pullback to 38.2% Fibonacci level
  • Overall trend of the asset remains positive
  • Upward breakout from flag pattern may signal correction completion
  • Solana coin’s 24-hour trading volume: $3.3 billion
  • Indicates a 12% gain

Source: TradingView

Solana, the fifth-largest cryptocurrency, experienced a corrective phase after its parabolic surge, reaching a peak of $126 in late December. The recent pullback led the price to a bottom of $85, aligning with the 38.2% Fibonacci retracement level.

Nevertheless, a consistent formation of lower highs and lower lows on the daily time frame indicated the emergence of a bullish reversal pattern known as a FLAG. According to this pattern, the ongoing retracement might serve as a brief pullback to re-energize the depleted bullish momentum, setting the stage for the next upward move.

As per the Fibonacci extension, the spot-breakout rally could surge the altcoin by 58% to hit a potential target of $152.

SOL vs BTC Performance

SOL price

In the last three months, both Solana and Bitcoin have demonstrated bullish price movements. Nevertheless, their recovery patterns exhibit notable distinctions. Solana (SOL) showcased a robust recovery characterized by substantial retracements, presenting favorable conditions for pullback trading strategies. Conversely, Bitcoin, as the primary cryptocurrency, displayed a more stable and gradual upward trajectory, making it better suited for breakout trading strategies.

  • Exponential Moving Average: The 50-day EMA could continue to offer pullback support to buyers.
  • Moving Average Convergence Divergence: A bearish crossover state between the MACD and signal reflects no sign of reversal yet in SOL from a price perspective.

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