Solana price shows a bullish trend, with analysts predicting that a breakout above $260 could push SOL to $300 or even $400 this week.
The price of Solana (SOL) has shown a bullish trend in the past 24 hours, trading between $247.09 and $234.15. However, at the time of writing, Solana's trading price is $237, down 1.08% from a key resistance level.
Despite the slight pullback, analysts predict that Solana is likely to break out this week and potentially reach a new all-time high.
Will Solana price rise this week?
Solana's recent price performance is consistent with its steadily improving on-chain metrics, indicating a positive trend for the cryptocurrency. According to data from Coinglass, Solana's open interest (OI) reached a new all-time high of $5.45 billion earlier this week. This growth suggests increasing liquidity and new capital entering the Solana market, which is a typical indicator of strong buying activity.
Additionally, data from defillama shows that Solana's weekly trading volume surged to $41.6 billion in mid-November, a new all-time high since 2020. This is a significant increase from the previous week's $18.14 billion. The increase in trading activity indicates improved market participation and confidence in the Solana ecosystem.
defillama also reported that Solana's transaction fees last week were $49.64 million, setting another record. The increase in network activity has enhanced the overall bullish outlook for the platform, indicating that both traders and developers are actively engaging with the chain.
SOL technical indicators point to ATH
The technical chart patterns for SOL price suggest that it has the potential to continue its upward trend. Analysts have identified a bullish cup and handle pattern on Solana's monthly chart, which historically has a 95% success rate for further upside. Independent crypto analyst Titan of Crypto explains, "Once Solana breaks its previous all-time high, it could surge to $400."
Meanwhile, short-term analysis shows that the key resistance levels are at $260 and $278. Breaching these levels could trigger a rally, while the support level at $220 remains strong. Analysts believe that once Solana's price breaks the current resistance, the $360-$400 range can be achieved.
Crypto researcher Aylo has highlighted another bullish pattern that underscores Solana's potential to outperform Ethereum. Aylo states,
"If SOL sets a new all-time high against Bitcoin, it will achieve what Ethereum failed to do in the previous cycle."
Bullish pennant pattern suggests further upside
A key bullish indicator for Solana's price is the technical chart, which shows a bullish pennant pattern. This pattern is formed when the price experiences a strong upward move followed by a consolidation phase, typically signaling a continuation of the previous uptrend.
A breakout above the upper boundary of the pennant (in line with the $260 resistance level) could trigger a new round of rallies. Analysts predict that a breakout from this pattern could push Solana towards the $290-$300 range. However, if it fails to hold the $220 support level at the lower boundary of the pennant, the bullish outlook may be invalidated. However, with the RSI dipping below its signal line (rating at 53), the bullish momentum may be waning.
Additionally, the MACD blue line has formed a bearish crossover, which is a sign of weakening bullish rebound. The histogram has also moved into the negative region, suggesting increased selling pressure due to concerns about further SOL price declines.
Crypto market analyst More Crypto Online commented,
"The bullish pennant pattern suggests that if Solana convincingly breaks above the $260 level, the uptrend could extend to new all-time highs."
Analysts focus on key breakout levels
Market analysts are closely watching Solana's price as it hovers around key resistance levels. Crypto analyst More Crypto Online points out that Solana is "following a five-wave cycle" and could reach its $360 target in the coming months. They added that a break below $212 could signal a more significant correction, but the overall structure remains bullish.
Additionally, historical price patterns suggest that SOL's price may follow a similar trajectory to its 2021 rally, potentially generating massive gains. Crypto market observer Miles Deutscher tweeted, "Solana is repeating the same pattern as 2021, which could see it reach $780 in the long run."
Although the current price is hovering below the $260 all-time high, analysts believe that a breakout above this level could lead to a rapid price increase, with target prices set at $276 and above.
