Crypto analyst Josh Olszewicz recently highlighted an extremely bullish technical setup forming for Solana’s SOL token against the US dollar. In a tweet, Olszewicz pointed out an emerging inverse head and shoulders (H&S) pattern, noting it looks much better than Ethereum’s chart.
After peaking at $260 in November 2021, Solana’s price cratered over 95% to a low of $8 by end of 2022 amid the broader crypto downturn. However, 2023 brought a reversal, with SOL rebounding to nearly $26 in January.
This price action has shaped the shoulders and head of an inverse H&S pattern on SOL’s charts since mid-January. Olszewicz identified key neckline resistance around $25.81. A decisive break above this level would confirm a bullish trend reversal.
Using Fibonacci extensions, Olszewicz outlined potential upside targets at $33.85 and $38.82 if the neckline is surpassed. This represents possible gains of 35-55% from current prices.
While the emerging inverse H&S presents a very bullish setup, traders await a strong breakout above the $25.81 neckline with substantial volume before confirming the optimistic projections. Near-term resistance around this level has held up so far.
As with any technical analysis, the pattern may or may not materialize as forecasted. However, Olszewicz highlights SOL’s constructive structure given broad market challenges. A confirmed breakout could mark a significant trend change for the battered cryptocurrency.
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