Recent price fluctuations of Solana have sparked dramatic movements on exchanges, causing tension between buyers and sellers. Over 2.7 million SOL, approximately $423 million, have flowed back and forth.
The recent price fluctuations of Solana have been accompanied by dramatic movements on exchanges. Over 2.7 million SOL, equal to approximately $423 million, have flowed back to platforms in just 9 days, reflecting investors’ uncertainty. This alternating between accumulation and profit-taking phases creates high volatility in the SOL price.
According to crypto analyst Ali Martinez, Solana is on the verge of a major technical breakthrough. His chart shows a classic “cup and handle” formation, with SOL consolidating just below the crucial $200 level. A decisive break above this level could trigger a 500% to 1000% upward move, sending prices into the $1,000 to $2,000 range.
At the time of writing, the SOL price is showing a strong bounce from recent lows, with five consecutive green candles pushing the price towards $170. The RSI at 55.56 indicates a forming bullish momentum. However, without a clear break above $170 with significant volume, a downside correction remains likely.
SOL is among the top gainers of the TOP 10 with a 15% increase over the last 7 days. It has pierced through its Ichimoku cloud on the 4H chart, confirming a short-term bullish momentum.
In the 12H timeframe, SOL enters the cloud, with a Point of Control (POC) displayed at around $174. In other words, SOL must first pass through this significant liquidity zone where sellers dominated the market discussions a few weeks ago.
A breakthrough of this zone could lead SOL back to $200 in the coming days or weeks, according to the Mean Reversion Channel.
In summary, Solana is at a key moment, with bulls and bears battling for market control. If buyers manage to break the $200 resistance, it could pave the way for a historic surge to new all-time highs. But without this breakthrough, consolidation or correction are possible. Crypto enthusiasts will closely monitor the events surrounding this high-potential cryptocurrency.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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