Solana (SOL) price may be on the verge of a bullish rally, with indicators suggesting the altcoin’s value could return to a key milestone that investors have been craving.
SOL is currently priced at $142.57, down 45% from its all-time high. In this analysis, BeInCrypto highlights how a certain technical pattern could help validate a successful rally and the cryptocurrency’s targets in the coming weeks.
Solana looks set to break resistance
On October 1, Solana’s price was at $158.50 and was indicating a possible rally towards $180. However, as soon as the token attempted to climb above $160, the bears forced it lower, eventually taking the price below $145.
Despite the decline, the SOL/USD daily chart shows that the cryptocurrency may soon be poised for a recovery. This reason is largely due to the formation of an inverted head and shoulders pattern.
Read more: Solana vs. Ethereum: A Definitive Comparison
This technical pattern features three successive lows, with the left and right shoulders being shallower than the head. Typically, this formation indicates a bearish-to-bullish reversal, suggesting the completion of a downtrend.
However, to validate the thesis, Solana price needs to break above the neckline around $145. Once this occurs and buying pressure increases, the altcoin’s price could break above the resistances of $152.66 and $163.06.
Solana daily price analysis. Source: TradingView
This thesis is also supported by the Funding Rate, which measures the position of traders in the market. Thus, when the Funding Rate is positive, buyers are paying sellers, and the average expectation is for a price increase.
On the other hand, a negative Funding Rate indicates that sellers are paying buyers, with most traders anticipating a decline. Yesterday, the metric was negative, but at the time of writing, it has returned to the positive region, suggesting that increasing long positions could contribute to Solana’s price recovery.
Solana Funding Rate. Source: Santiment
SOL Price Prediction
A closer look at Solana’s daily chart reveals that its price is close to a high from a symmetrical triangle pattern, formed by falling and rising trend lines of equal slopes.
This pattern could signal either a bullish or bearish outcome. However, the current setup suggests that SOL could break above the $145 resistance level. If this rally is confirmed, the next target could be around $171.76, opening the possibility for a climb beyond $200.
Read more: How to Buy Solana (SOL) and Everything You Need to Know
On the other hand, if the bulls fail to push the price above $145, Solana could face a decline, potentially dropping to $127.72.
Solana daily price analysis. Source: TradingView
The article Solana Prepares for Explosive Rise – Find Out Next Price Targets appeared first on BeInCrypto Brasil.
