Despite an analyst predicting Solana's price reaching $4,500, current indicators point in the opposite direction. A detailed analysis of the factors that could hinder such short-term growth.
According to analyst Ali Charts, the price of Solana could soar up to $4,500 due to the formation of a “cup and handle” pattern on the SOL’s weekly chart. For this bullish scenario to unfold, Solana needs to break through a key resistance. If such a breakthrough occurs, traders then expect a surge in prices up to $4,500.
However, several indicators suggest that this explosive surge is not imminent. The decrease in social volumes and activity on decentralized exchanges (DEX) for Solana hints at waning investor interest in the altcoin. Moreover, the negative funding rate of SOL futures contracts indicates that traders are betting on a price decline.
After a significant increase this month, the price of Solana is currently in a consolidation phase between $145 and $152. A new rally will only occur if buyers continue to accumulate tokens at these levels. The rising Relative Strength Index (RSI) indicates, however, a renewed bullish momentum.
The Fibonacci Bollinger Band (FBB) indicates a tightening of the band, signaling a strong move awaited for SOL in the next few days. In case of a drop, SOL could find new buyers in the zone between $139 and $137. If the volumes follow, then SOL could start its new rally above $160. The next targets are between $170 and $180 and between $190 and $210.
In conclusion, despite the optimistic forecasts of an analyst, a price surge of Solana to $4,500 seems unlikely in the short term. The decrease in social volumes and activity of memecoins on the Solana network are bearish signals. Traders must therefore remain vigilant and rely on market indicators to adjust their strategies accordingly.
For those looking to buy Solana (SOL), the token is listed on Bitget. Here are the steps to purchase the token in minutes:
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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