Solana Pattern Signals Bullish Move: Expert Reveals SOL Price Levels To Watch

Solana (SOL) is signaling the potential for a bullish reversal amid the shifting market trends. Crypto analyst Ali Charts has identified a promising pattern on SOL’s chart. 

The analyst’s findings suggest a possible buying opportunity for traders, despite the persistent downward pressure in the broader crypto market.

Ali Charts shared his analysis on X, highlighting a bullish megaphone pattern forming on Solana’s chart. He noted that Solana might be developing a bullish megaphone on the 4 hours chart. 

This pattern is characterized by diverging trend lines, with each subsequent high and low being higher than the previous one.

Solana Price Analysis

The recent price correction has brought Solana to a critical support level. Ali notes that SOL has dipped to the 61.8% Fibonacci level, an area he notes to be key for traders. 

This level frequently acts as a turning point for price action, potentially signaling a reversal. Adding weight to the bullish case, Ali points out that Solana’s Relative Strength Index is currently in oversold territory. 

Besides, an oversold RSI often precedes a price rebound as buying pressure typically returns at these levels. This indicator, combined with the Fibonacci support, strengthens the possibility of an upward move.

Read also: Why You Need to Hold at Least 1,000 Ripple (XRP) Tokens: A Michael Saylor Insight

SOL Price Prediction

For traders considering a position in Solana, Ali suggests a cautious approach. He recommends placing a stop-loss around $156-$154, just below the 61.8% Fibonacci level. This conservative stop-loss aims to protect against further downside risk.

On the upside, Ali proposes take-profit targets between $200 and $259. These levels align with key Fibonacci extension levels and the projected move based on the megaphone pattern. Reaching these targets would represent a recovery for Solana.

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Market Implications of a Bullish Reversal

If Solana’s price follows the bullish megaphone pattern, it could have broader implications. A strong rebound might boost investor confidence in SOL and potentially influence sentiment in the wider crypto market. 

The 61.8% Fibonacci level could serve as a springboard for future price increases. Per price data from CoinGecko at press time,  SOL trades at $164.56 with a trading volume of $4,976,062,612. This shows a 1.12% and a 6.57% price decline in the past week. 

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Samuel Munene
Samuel Munene

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