Solana Price Could Eclipse $1,400 As Massive Bull Flag Emerges
July 19 2024 - 7:00AM
NEWSBTC
The Solana price has surged over 33% in the past two weeks, and
according to crypto analyst Ali Martinez (@ali_charts), this could
be the precursor to a much larger rally. In the weekly chart
(SOL/USD), the Solana price exhibits a major bullish pattern,
suggesting a potential surge beyond the $1,400 mark. Is $1,400 Next
For Solana? Martinez highlighted a “bull flag” formation, a classic
continuation pattern in technical analysis that could signify a
significant upward movement in Solana’s value in the upcoming
months. “The bull flag nobody is talking about!” Martinez
commented. The chart displays a bull flag pattern, identified
through a sharp upward trend followed by a consolidating downward
channel. This pattern began forming after a strong price increase
from mid-September last year, where Solana ascended from around
$17.50 to a peak of approximately $210. Following this rise, the
price began to consolidate, forming a downward sloping channel that
suggests a period of accumulation and potential buyer exhaustion
after the initial surge. Related Reading: $174 In Sight: Analyst
Projects Major Surge For Solana (SOL) The flagpole, an essential
component of the bull flag pattern, was established by the initial
steep increase in price, while the flag itself is represented by
the subsequent consolidation phase. This phase is depicted by a
series of higher lows and lower highs, converging into a narrowing
point that suggests decreasing volatility and tightening price
ranges—a typical precursor to a potential price breakout. According
to Martinez’ analysis, the price of Solana stands at $157.98 and
thus just below the upper trendline of the channel. The
consolidation has formed within a tight range, with the upper and
lower boundaries clearly marked by trend lines converging towards a
point on the chart projected to occur soon. The critical support
level, as observed from the consolidation phase, is near the $130
mark, with the resistance level just slightly above the current
price, around $160. Related Reading: Solana’s Popcat Nears $1
Billion Market Cap After Hitting ATH If the bull flag pattern holds
true to its typical implications, a breakout could be expected upon
reaching the apex of the converging trend lines. Historically, the
projected target of a bull flag breakout is estimated by measuring
the length of the flagpole—more than 1,000% in SOL’s case—and
projecting it upwards from the point of breakout or from the
support level (in a more conservative alternative). This
calculation would position the potential price target for Solana
above $1,400, according to Martinez’ chart. In the more
conservative scenario, Solana could also reach at least $1,300. Key
Resistance Levels For SOL On the way towards the enormous price
target, there are several resistances and intermediate price
targets to overcome. In the short term, the 0.618 Fibonacci
retracement level at $163 is the most important. Known as the
“golden ratio,” this is currently the most watched resistance.
Afterwards the 0.786 Fib at $205 needs to be watched as a last
major resistance before a price returns to the November 2021
all-time high at approximately $260. The Fibonacci extension levels
further offer potential targets if the Solana price surpasses its
original high. The 161.8% extension at $415.23 marks a significant
target for initial price discovery. Subsequent levels like the
261.8% extension at $666 and the 361.8% level at $918 are crucial
in a very strong trend where the price extends well beyond the
initial range. Remarkably, even the 423.6% extension only predicts
a rally in Solana’s price up to $1,074. Featured image created with
DALL·E, chart from TradingView.com
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