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Solana fights bearish headwinds, but a historical chart pattern points to a possible rally to $300 in the near future.
Despite reaching a new all-time high at $264 on Nov. 23, Solana (SOL) has yet to enter a price discovery period. The altcoin has been in a clear downtrend over the past 25 days, forming a series of lower highs (LHs) and lower lows (LLs) in the four-hour time frame.
Solana 4-hour chart. Source: Cointelegraph/TradingView
Even with SOL’s bearish outlook in the short term, its long-term charts indicate an imminent rally, with multiple analysts calling for the altcoin’s new all-time high.
Solana’s “bullish flag” fractal predicts rally to $300
As illustrated in Solana’s daily chart, the altcoin is repeating a fractal pattern as a bull flag from January 2024, which led to a triple-digit rally in Q1 2024.
SOL/USD bull flag fractal, January 2024 and December 2024. Source: Cointelegraph/TradingView
The bull flag witnessed a breakout after 30 days, whereas the current pattern has taken shape over the past 25 days. Additionally, other bullish confluences that have been observed in both periods are the price retest of the 50-day exponential moving average (EMA) level (blue line) and the relative strength index (RSI) resetting under the 50 mark.
Considering Solana repeats a bullish fractal breakout, the altcoin’s immediate target is based on the 1.618 Fibonacci extension, which is around the $320 range. A long-term target of 2.272 FIB extension remains around $440.
Related: Price analysis 12/16: SPX, DXY, BTC, ETH, XRP, SOL, BNB, DOGE, ADA, AVAX
Solana is ready for an “absolute monster run,” says analyst
For the majority of Q4, Solana’s price outpaced both Ether (ETH) and Bitcoin (BTC), according to Glassnode. However, over the past 30 days, Ether and Bitcoin have registered an uptick of 26.96% and 17.49%, respectively, whereas Solana has significantly lagged with a 1.61% return.
This has led the crypto community to “troll-posting” on Solana, but Jelle, an anonymous crypto trader, said that the altcoin is preparing for an “absolute monster run.”
SOL/BTC, SOL/ETH, and SOL/USD pairs are testing support. Source: Jelle/X
Additionally, the analyst said that Solana is testing its support levels against Tether’s USDt (USDT), ETH and BTC trading pairs, further strengthening the possibility of a bounce.
Solana daily chart analysis. Source: Zer0/X
Meanwhile, Zer0, an independent trader, dismissed the fear, uncertainty and doubt against SOL, saying its price action was a “simple breakout and retest” of the previous resistance turned support range.
However, Daan Crypto, a full-time crypto investor, emphasized that SOL needs to break above $235 in the short term to confirm a bullish break of structure (BOS) in the four-hour chart and establish a new higher high trend for the altcoin.
Related: Crypto ‘eating TradFi’s lunch’ as $5.75B Coinbase revenue beats Nasdaq
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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