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.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
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.
You may also be interested in:
- Why Is The Crypto Market Up Today?
- Analyst Says SEI Is Breaking Out, Shares Critical Make Or Break Levels
- The 4 Best Crypto Tokens To Invest In January 2024: Avalanche (AVAX), Meme Kombat (MK), Sponge V2 (SPONGE), and Bitcoin Minetrix (BTCMTX)
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
