Solana (SOL) is one of the strongest assets in the crypto market and is currently in a consolidation phase after three weeks of aggressive volatility, marked by significant increases and even bigger decreases.
Despite the recent turmoil, Solana’s resilience has kept it in the spotlight of analysts and investors alike, who are keeping a close eye on its share price.
As this period of consolidation unfolds, speculation is mounting about the potential for massive gains in the future. Some market experts are already predicting that Solana could soar to its all-time high of $260 later this year, driven by its robust ecosystem and continued adoption.
SOL Technical Analysis
Top analyst and investor Jelle op X recently announced a technical analysis chart which highlights a mid-cycle consolidation phase above the $130 level. Jelle compares this phase to the consolidation period in 2021, which preceded an aggressive move higher that took the price to new highs.
The chart shows that this current phase could also lead to significant gains, with the analyst setting a price target of $260 – Solana’s previous high.
Jelle’s analysis indicates that a test of this $260 level is likely, especially if the price can break past the yearly high of $209. This level represents a major resistance point and breaking it could signal the start of a new bullish trend.
As Solana continues to consolidate, the price action in the coming days will be crucial to determine whether the asset can gain the momentum needed to move to new highs. Investors and traders are keeping a close eye on these developments and are anticipating a potential breakout that could propel the price back to its peak levels.
Price Action and Key Levels
Solana is currently trading at $158, above its daily 200 moving average of $151.33. This comes after a significant market-wide rally on Friday, which saw its price rise by over 10% in just two days. Now, the asset is at a crucial point as it tests local supply levels.
For the price to continue its upward movement, it needs to break above $163.62, the local peak reached on August 8. Consolidation above this level would be a sign of strength and could lead to further gains, potentially paving the way for a move towards new highs.
However, if it fails to break through this resistance, a period of sideways consolidation below $163.62 is expected. This would mean that Solana could remain range-bound, trading within a narrow band as it waits for another catalyst to push the price higher or lower. The price action over the next few days will be crucial in determining whether it can maintain its bullish trend or whether a longer consolidation phase is in store.
Cover image by Unsplash, chart by TradingView