As Solana V-shaped reversal gains momentum amid rising demand, breakout opportunities target the $271 level, which could be the next all-time high.
With bullish sentiments in the crypto market, Solana is witnessing a surge in buying pressure. Over the past 24 hours, the cryptocurrency has surged by 5.26%, bringing its market cap to $110 billion.
Having surpassed the $230 barrier, the broader market anticipates Solana’s price could soon break past the $250 milestone. Will bulls drive the price to a new all-time high in 2024?
Solana Price Analysis
On the 4-hour chart, Solana’s price action forms a falling channel pattern. The bullish recovery from the critical support trendline near the psychological $200 mark signals a V-shaped reversal within this channel. This rally is a strong indicator of renewed market momentum.
The reversal rally is currently testing the 23.6% Fibonacci level at $231.41. Resistance levels also show confluence with the simple moving average lines and the overhead resistance trendline.
A close above this level would signify a major recovery, reinforcing bullish expectations and boosting the chances of a breakout rally. However, the prolonged decline within the falling channel pattern has raised concerns about a potential “death cross” event, where the 50-period simple moving average crosses below the 200-period simple moving average on the 4-hour chart.
Despite this, the V-shaped reversal has pushed the 4-hour RSI above the halfway mark, and the 14-day SMA has risen. As a result, the momentum indicator maintains a positive alignment, even with the bearish signals from the simple moving averages.
Solana Price Targets
With breakout opportunities on the horizon, the Fibonacci levels suggest an immediate rally target of $246.73. However, the falling channel breakout projects a possible move toward the 50% Fibonacci level, around $259.
Improving market sentiment increases the likelihood of Solana reaching new all-time highs. The Fibonacci levels suggest that $271 and $289 are potential targets for the next all-time highs.
Meanwhile, a bearish reversal could see Solana retesting the $220 support level, followed by the $200 psychological mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
