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What’s with the price of Solana (SOL)?

What’s with the price of Solana (SOL)?

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Solana has been one of the most explosive of the large cap cryptos this bull market, and now the price has been becalmed for the last 14 weeks. Are we in for more consolidation, or is the price about to rip upwards again?

Solana huge 1,100% price appreciation

Solana is the ETH killer. It is fast, cheap, and ready to become the king of the layer 1 networks. Of course, Ethereum may have something to say about that, and much also depends on whether Solana’s screamingly fast Fire Dancer validator client launches successfully later this year.

That said, purely from a perspective of price, $SOL is showing the way. A 1,100% price appreciation from September 2023 to mid-March 2024 shows that Solana needs to be taken very, very seriously. 

Since that madcap rise, the $SOL price needed to take a real breather, and just like the rest of the cryptocurrency market, a long period of consolidation has been necessary in order to reset the price and build some structure on which to launch the next potential surge towards all-time highs.

Lower highs vs higher lows

Source: TradingView

Looking at the relatively short daily time frame, it can be seen that the $SOL price is being held up by strong support at $126 to $138. Whilst that top of $210 achieved in mid-March has been succeeded by successive lower highs, a series of higher lows goes all the way back to September 2023.

An amazing $SOL weekly chart

Source: TradingView

On the weekly chart $SOL looks amazing. That support at $138 is incredibly strong, resting as it does on price structure from 2021/2022, and also as the recent price wicks down through bear testament to.

Volume is gradually decreasing, and this points to an explosive move in the making. If this is to the downside, $112 down to $100 is the next major band of support. If the more likely upside explosion is next, then predicted targets of $175, $200, $250, and the all-time high at $260 could be next.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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