Solana has successfully reclaimed what appears to be the critical level that set it on its path to $260 in 2021. Hitting this price suggests that SOL could retest its all-time high (ATH).
It also means that SOL could possibly surpass it despite several rejected attempts. This analysis considers historical data and technical patterns supporting the move.
Solana Set to Repeat History
Earlier this year, SOL’s price surpassed $200, prompting speculation that the altcoin was due to hit a record high. However, a few months after that, the price plummeted by 36%. This drew several comments online, suggesting that the cryptocurrency might have its cycle top.
According to signals from the weekly chart, the pessimistic sentiment is inaccurate as of this writing. As shown below, Solana recently crossed the $141.82 support. A similar thing happened in August 2021, and by November of the same year, the price had increased by 82% and reached $260.
As shown below, the Relative Strength Index (RSI) broke above the descending trendline for the prediction to come to pass during that bull market. Currently, a similar pattern appears to be playing out, as the RSI seems to be doing the same.
Read more: 6 Best Platforms To Buy Solana (SOL) in 2024
If history rhymes with Solana’s past performance, then the price could hit $260 and probably surpass it within the next three months.
Another metric supporting this bias is Solana’s active addresses, which recently hit an all-time high. An increase in active addresses is a good indicator as it suggests a rise in the number of direct participants in successful transactions.
This increase also signifies a growing demand for SOL. Thus, should network activity on Solana continue to climb, so will SOL’s price.
SOL Price Prediction: New All-Time High Close
Based on the daily chart, Solana’s price could soon break the $151.99 resistance due to the position of the Exponential Moving Average (EMA). At press time, the 50 EMA (yellow) is still above the 20 EMA (blue), indicating that SOL has not yet fully hit a bull phase.
The same chart shows that the shorter EMA could be on the brink of rising above the longer one. If that happens, then SOL’s upswing might surpass the overhead resistance while banking on the support at $144.64.
Considering this projected thesis, Solana’s next price level could be around $176.07. If validated, the token might move toward $194.08, probably setting the stage for SOL to hit $260 again and climb closer to $300.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
However, a pullback to $129.77 might invalidate this bias. Should that be the case, Solana’s price could decline to $129.77.
Disclaimer
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