Solana repeat bull flag hints at ‘absolute monster run’ to $300 SOL
2024.12.17 14:21
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 4-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, Jan. 2024 and Dec. 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 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 the $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 Ethereum and Bitcoin, according to Glassnode. However, over the past 30-days, Ethereum and Bitcoin have registered 26.96% and 17.49% uptick, respectively, whereas Solana has significantly lagged with a 1.61% return.
This has led to the crypto community “trolling-posting” on Solana, but Jelle, an anonymous crypto trader, said that the altcoin is reading for an “absolute monster run.”
SOL/BTC, SOL/ETH, and SOL/USD pairs are testing support by Jelle. Source: X.com
Additionally, the analyst said that Solana is testing its support levels against USDT, ETH, and BTC trading pairs, further strengthening the possibility of a bounce.
Solana daily chart analysis by ZerO. Source: X.com
Meanwhile, Zer0, an independent trader, dismissed the FUD 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 4-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.
