Solana Price Prediction: Possible wedge pattern could lead to 26% SOL price rally


  • Solana price is back at the optimum buy level in the wake of a 14.40% weekly cumulative loss.
  • SOL eyes a 26.00% rally with the formation of a falling wedge pattern.
  • Solana price must close the day above immediate support at $30.00 to validate the bulls' quest to $38.55.

Solana price is embracing the return of stability several days after the cryptocurrency market flipped bearishly. The largest cryptocurrency, Bitcoin, plunged below $20,000 on Friday and pulled the entire market down with it. From support formed at $36.50, SOL price slipped and almost dispersed the buyer congestion at $30.00. However, a bullish outlook is back in play, with Solana price expected to make a stronger comeback.

Solana price is on the threshold and building recovery momentum.

Solana price hit extremely oversold conditions during its most recent fall to $30.00. This saw more capitulation as weak retail hands rushed to protect their capital. A combination of these two factors implies that SOL's recovery is imminent. In other words, as the Stochastic RSI lifts from the oversold region, the competitive smart contracts token would reach higher levels like $38.50 and $48.50.

 SOLUSD chart

SOL/USD eight-hour chart

A falling wedge pattern formed on the eight-hour chart could be SOL's ticket from the stubborn bearish shackles. This pattern develops during a sharp or extended drop where two trend lines are drawn, touching the asset's lower lows and lower highs. Consolidation takes place at the wedge's apex ahead of a significant breakout.

Traders must wait for Solana price to affirm movement above the upper trend line before going all-in for the 26.00% move to $38.50. Falling wedges are highly bullish patterns that often mark the transition from a downtrend to an uptrend. Therefore, SOL's run-up to $38.50 could set the stage for a rally to $48.50.

Despite the above bullish outlook, investors do not seem convinced that Solana price is ready to roll down the runway and take off. Santiment's Positive Sentiment on-chain metric reveals investor sentiment continues to decline three weeks after peaking at 2,802. Perhaps a catalyst from the ecosystem could reignite interest in the token and fashion Solana price with enough momentum to climb the ladder.

 SOLUSD price

Solana Positive Sentiment

The expected run up to $38.50 might be stalled by several seller congestion zones at $34.50 and $36.50. Solana price will likely settle and consolidate in the narrow range between $30.00 and $34.00 if it lacks the extra boosts to bring down the cited resistance.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP