Solana (SOL) price has shown bullish momentum over the past 24 hours, with the cryptocurrency trading between $247.09 and $234.15. However, at press time, Solana is trading at $237, down 1.08% from the key resistance level.
Despite the minor pullback, analysts predict that the Solana could be close to a breakout this week and could potentially set a new all-time high.
Will Solana Price Increase This Week?
Solana’s recent price performance is consistent with strengthening on-chain metrics that indicate a positive trend for the cryptocurrency. Earlier this week, Solana’s open interest (OI) hit a new all-time high of $5.45 billion, according to Coinglass. The increase indicates growing liquidity and new money entering the Solana market, a typical indicator of strong buying activity.
Additionally, data from DefiLlama shows that Solana’s weekly trading volume surged to $41.6 billion in mid-November, an all-time high since 2020. This is a significant increase from $18.14 billion a week ago. The increase in trading activity indicates increased market participation and confidence in the Solana ecosystem.
DefiLlama also reported that Solana set another record last week with $49.64 million in transaction fees. The increase in network activity strengthens the overall bullish outlook for the platform, indicating that traders and developers are actively engaging with the chain.
SOL Technical Indicators Point to ATH
Technical chart patterns for the price of SOL suggest that it has the potential to continue to rise. Analysts have spotted a bullish cup-and-handle pattern on Solana’s monthly chart, which has historically had a 95% success rate for further gains. “Once Solana breaks above its previous all-time high, it could surge to $400,” explained independent cryptocurrency analyst Titan of Crypto.
Meanwhile, short-term analysis shows key resistance levels at $260 and $278. A break above these levels could spark a rally, while support at $220 remains strong. Analysts believe that once Solana price breaks above current resistance, the $360-400 range could be achievable.
Another bullish pattern pointed out by cryptocurrency researcher Aylo highlights Solana’s potential to surpass Ethereum. Aylo said,
“If SOL hits a new all-time high against Bitcoin, it will achieve something that Ethereum failed to do in the last cycle.”
Bullish Pennant pattern signals further gains
A key bullish indicator for Solana’s price lies on its technical chart, which shows a bullish pennant pattern. This pattern forms after a strong rise in price followed by a consolidation phase and usually signals a continuation of the prior uptrend.
A breakout above the upper border of the pennant, which coincides with the $260 resistance level, could spark a fresh rally. Analysts predict that a breakout from this pattern could push Solana toward the $290-300 range. However, a failure to hold the $220 support at the lower border of the pennant could invalidate this bullish outlook. However, as the RSI has fallen below its signal line, which has a rating of 53, the bullish momentum could be fading.
Furthermore, the MACD blue line has formed a bearish crossover, which is a sign of a weakening bull rally. The histogram has also moved into the negative territory, suggesting an increase in selling pressure due to fears of further price declines in SOL.
Cryptocurrency market analyst More Crypto Online commented,
“The bullish pennant pattern suggests that if Solana breaks convincingly above the $260 level, the rally could extend to new all-time highs.”
Analysts eye key levels for breakthrough
Market analysts are keeping a close eye on Solana’s price as it lingers near a key resistance level. Cryptocurrency analyst More Crypto Online noted that Solana is “following a five-wave cycle” and could soon reach a target of $360 in the coming months. They added that a break below $212 could signal a larger correction, but the overall structure remains bullish.
Additionally, historical price patterns suggest that the SOL price could follow a trajectory similar to the 2021 rally, leading to massive gains. Crypto market observer Miles Deutscher tweeted: “Solana is repeating the same pattern of 2021, which could take its price to $780 in the long run.”
Although the current price is hovering below the all-time high of $260, analysts believe that a break above this level could lead to a rapid rise in prices, with targets set at $276 and above.
