Key Takeaways
- Solana’s price rally puts it within striking distance of $200, a level not seen since Feb. 14.
- On the 4-hour chart, SOL has traded above the lower boundary of an ascending channel since April.
- An analyst said Solana has retested support in its post-halving range and is approaching a breakout.
- As long as the Chaikin Money Flow (CMF) remains above zero, SOL bullish continuation is likely.
Solana’s (SOL) price may be finally ready to hit $200 for the first time since Valentine’s Day. In the last 30 days, SOL has increased by 26.35% after it evaded another drop below $100.
Despite the increase, Solana’s price continues to trade below the psychological mark. But after examining the altcoin’s technical setup on different timeframes, it appears that the time to retest the key zone is near.
Solana Keeps Bullish Pattern Intact
At press time, Solana’s price is close to hitting $180. On the 4-hour chart, the altcoin got this close to $200 as it continues to trade within an ascending channel.
As seen in the chart below, SOL has failed to drop below the channel’s lower boundary since April. This position indicates strength, as the Relative Strength Index (RSI) also supports the move.
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According to the image below, the RSI, which measures the speed and size of price changes, has climbed to 65.23. The rise in the RSI reading indicates bullish momentum.
Therefore, it is unlikely that Solana’s price will sink below the lower boundary of the ascending channel. Instead, the cryptocurrency might climb higher with targets above the current peak of the upper boundary.
If that is the case, then Solana’s price is likely to breeze past $200 soon.
Crypto analyst Rekt Capital appears to echo this outlook. In his May 16 newsletter, he noted that Solana has re-entered its re-accumulation range—a setup that precedes a breakout.
“On the Monthly timeframe, it’s clear Solana has broken back into its post-halving reaccumulation range. And in the most recent couple of months, SOL has successfully retested the range low as support, springboarding price to revisit the range highs. However, Solana needs to break this range high resistance to confirm a breakout,” Rekt Capital mentioned .
SOL Price Analysis: Setup Gains Strength
Like the technical setup on the 4-hour chart, the daily chart shows that Solana’s price is trading in an uptrend.
As seen below, the image shows that SOL is likely to break above the upper trendline of the ascending channel. The altcoin might surge past the overhead resistance at $195.02 if validated.
If that were to happen, SOL’s price might climb to the 0.382 Fibonacci level at $218.56. However, that will only happen if the Chaikin Money Flow (CMF) stays above the zero signal line.
In a highly bullish case, Solana could rise to $247.68. However, if the CMF drops below the zero signal line, this prediction might not pass.
In that scenario, SOL’s price might decline to $137.98 at the 0.786 Fibonacci level.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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