Analyst Suggests Solana (SOL) Could Reach This Level Following Bull Flag Breakout

January 17, 2024

Solana Faces Key Support After Sharp Pullback, Analyst Asks To Watch This Next Support For SOL

Solana (SOL), one of the most popular layer-1 blockchain platforms, has seen its price action strengthen this week after breaking out of a bull flag continuation pattern. According to technical analysts, this breakout could signal further upside for SOL in the near term.

On January 15th, SOL convincingly broke out of this bull flag, rallying from around $85 back up towards the $100 resistance area. This move reaffirmed the bulls’ control and suggests an upside continuation is likely.

Well-known analyst ChartMonkey noted this bull flag breakout on January 16th, predicting further upside continuation for SOL:

“As predicted, bullish pennant pattern in 8H timeframe has been broken. Expect a strong upward trend with more potential to go. Keep a close eye on it.”

Another respected analyst, Rekt Capital, also pointed to SOL rejecting old range lows, “slowly showing signs of becoming resistance.” This also indicates the previous uptrend is resuming.

According to analysis by altFINS, SOL remains in a medium- and long-term uptrend, although momentum readings are mixed in the near term. Key support is at $80, with resistance at $100 and $125.

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Their trade recommendation is to wait for a sustained breakout above $105 before entering fresh bullish swing trades, with upside potential back towards $125. Aggressive dip-buying can be done near $80 if the uptrend resumes quickly from here.

In summary, Solana’s latest price activity shows encouraging signs of continued bullish momentum. Further decisive breaks above the $100 and $125 levels would confirm the medium-term uptrend is reasserting itself after the recent pullback. Crypto investors should keep SOL on their watchlists.