Solana Ready for Another Price Move
After the recent negative Bitcoin ETF news, Solana (SOL) is showing signs of gearing up for a significant price movement in the layer 1 altcoin space.
SOL Building Price Structure
Last year, $SOL experienced rapid price action with a peak of $126. Since then, the price has been consolidating and forming a price structure, which is a healthier pattern to follow compared to steep upward runs. This consolidation phase sets the stage for the next move.
Potential Bull Flag Formation
On the 4-hour time frame, SOL appears to be moving within a potential bull flag pattern. Although it currently lacks the typical confirmation of three touches on the top trend line, the pattern is still worth considering. The multiple touches along the bottom trend line indicate a level of support. If the price breaks out of the flag pattern, a measured move suggests a potential target of $154.
Positive Longer-Term Outlook
Zooming out to the weekly time frame, SOL is consolidating around the 0.382 Fibonacci level. The next level to watch is the 0.618 level at $163, although it could face strong resistance there. To form a healthier price structure, a retracement back to at least $137 could be anticipated.
Crypto Market Upswing
The crypto market is currently experiencing an upward movement, with Bitcoin (BTC) back above $44,000. Altcoins like Injective (INJ) and Tia Token (TIA) have also seen significant gains of 18% and 33% respectively.
Hot Take: Solana Positioned for Growth
Solana (SOL) is showing promising signs for a potential price surge. With the formation of a possible bull flag pattern and positive longer-term price action, SOL could be poised for growth. Additionally, the current upward momentum in the overall crypto market further supports the potential for SOL’s rise. Keep an eye on SOL as it has the potential for significant price movement in the near future.
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