After the recent interest rate cut in the United States, crypto prices are finally turning green again and optimism has returned. With Bitcoin (BTC) and almost all altcoins having resumed their upward path, it is important to take stock and look at realistic price targets.
In this analysis, we focus on Solana (SOL), one of the largest and best performing altcoins today.
Nice consolidation pattern
Solana, currently trading at around $150, is known for its volatility, and the past few months have been no exception. SOL’s price rose above $200 in March, but dropped to a low of around $110 in July, a drop of almost 50%.
Despite these fluctuations, SOL has shown a clear consolidation pattern in recent months. The upper end of this pattern is around $188, while the lower boundary is located in the zone between $120 and $125. This lower boundary has acted as a strong support level six times in recent months and also served as resistance at the peak of last December.
On the daily chart, SOL is currently approaching the middle line of this parallel consolidation channel, which is located around $155. This level is an important short-term resistance. If SOL manages to break this barrier, the upper side of the channel at $188 comes into view as the first price target. However, a condition for this positive scenario is that SOL remains above the support level of $120.
Should SOL reach the $188 level, that will be the big test. If the crypto market can maintain the positive momentum in the coming weeks and months, SOL is likely to break out of this consolidation pattern. The question then is: how far can SOL go? For that, we need to look at the weekly chart.
Weekly chart and long term target price
The long-term consolidation pattern is clearly visible on the weekly chart. A breakout to the upside, which can be seen as a ‘bull flag’, would mean a price target of almost $310. This nicely matches the 1.618 Fibonacci extension level, which is just above $300. Here, the 0-level is the low of the bear market and the 1-level is the bottom of the current consolidation pattern.
Conclusion
With the current optimism, the way up is open for Solana. A first price target is the upper boundary of the consolidation pattern at $188. This level will be a crucial test for SOL. If the coming months turn out positive, we can cautiously look further at higher price targets in the long term. The zone between $300 and $310 is a clear first long-term target, where both the price target of the consolidation pattern and the 1.618 Fibonacci level come together.
Source: https://newsbit.nl/koersanalyse-solana-nadert-cruciaal-niveau-is-een-uitbraak-naar-310-mogelijk/
