Solana is gaining momentum after reclaiming the $150 resistance level, but what’s next? One analyst thinks the future is bright.
Bullish indicators point to an incoming rally
Technical analysis shared by crypto expert Ali Martinez suggests that Solana could be on the verge of a big rally, with the potential to hit $200 or more.
Martinez showed a so-called “Adam and Eve” pattern on Solana’s four-hour chart, a classic, textbook bullish reversal signal in technical analysis.
This pattern, typically marked by a sharp, V-shaped dip, the “Adam“, followed by a rounded, U-shaped bottom, the “Eve“, often signals that a price jump is coming.
And if we take a look to the graph, we can see that Solana experienced a drop to around $108, then rebounded to approximately $156, forming the “Adam” portion of the pattern.
The ongoing development of the “Eve” phase suggests that SOL is nearing a critical resistance level around $164.
If Solana successfully breaks through this resistance, Martinez’s analysis points to a potential price target of $220.
The bullish outlook depends on Solana clearing this key resistance. Failure to do so could invalidate the pattern, obviously.
Downtrend
Another analysis by TraderSZ also supports the bullish outlook for Solana.
The analysis notes that SOL broken through a strong downtrend resistance line on its daily chart, a move that, along with increased buying volume, suggests the potential for further upside momentum.
Daily hopium
The analysis outlines several critical levels to watch, including immediate resistance at $196.30, followed by a psychological barrier at $299.90.
Should the current bullish momentum persist, Solana could target $374.50 and even $518.30.
It’s pretty… optimistic. On the downside, support levels are identified around $130.70 and $80.00, which could act as pullback zones.
At the time of writing, Solana is trading at $160, reflecting a 7% increase in the last 24 hours and an 11% gain over the past week. Nice, but it’s enough for a rally?
