Solana (SOL) might be headed for a 112% hike — analyst asserts

Read CoinChapter.com on Google News

NEW DELHI (CoinChapter.com) — Solana’s SOL token’s prices might be headed for a 110% spike from current prices, asserts Twitter-based trader Bluntz.

The trader pointed out that bullish technical signals on the SOL/USD and SOL/BTC pairs indicate an impending upside rally for the Solana token. On the SOL/USD charts, Bluntz highlighted that the Solana token formed a morning star pattern on its monthly charts.

In detail, a tall bearish (red) candle, followed by a smaller bullish (green) or bearish candle with a short body and long wicks, and a third tall bullish candle form a morning star pattern. The middle candle represents market indecision, while the third confirms trend reversal in favor of bulls.

Also Read: Solana wipes all losses made since February as SOL paints a golden cross – what’s ahead?

Additionally, on the SOL/BTC chart, Solana prices have formed “a clear ABC” pattern, Bluntz added. An ABC pattern is a price pattern that consists of three consecutive price swings that help traders determine the enter and exit positions of a trade.

The ABC pattern sets SOL’s price target to 0.0061921, or $285 at current prices, a 112% boost from current price levels. As a result of these bullish cues, investor confidence might increase, helping the Solana token rise.

Solana Price Charts

Meanwhile, Solana prices have risen by nearly 85% in the past four weeks going from a weekly low of $78 (Mar 13) to a weekly high of $144 (Apr 2). However, SOL’s upside movement attracted bears’ attention, with long upper wicks indicating an aggressive sell-off.

In addition, Solana’s 20-day moving average (red wave) is moving up and would likely move above its 100-day MA (purple wave) to form a bullish technical pattern called the golden cross. The pattern forms when a short-term MA line crosses above a relatively long-term one.

Bulls could take cues from the golden cross to continue pushing the trend upward. SOL would likely flip immediate resistance near $142 before moving to target resistance from its 200-day MA (green wave) near $150.

If SOL breaks above its 200-day MA resistance, the Solana token would likely challenge $167 before corrections pare gains.

Also Read: Solana-based stablecoin Cashio falls prey to infinite mint glitch, CASH pummels to zero.'

Solana’s relative strength index is currently overbought, clocking 74.68 on the daily charts. Traders often consider an overbought RSI a prelude to an upcoming trend reversal in bears’ favor. As such, overbought RSI levels often trigger sell-offs.

An overbought RSI-inspired sell-off could see SOL fall to $129. If immediate support fails, the Solana token would likely fall to support from its 100-day MA (purple wave) near $117. Finally, SOL has support from its 20-day MA (red wave) near $105.

At the time of writing, SOL was trading at $132, down 3.6% on the day.

Please leave this field empty

Subscribe Today
for our Weekly Newsletter

Email Address *

Free Weekly Crypto News without the spam.

Check your inbox or spam folder to confirm your subscription.