As the crypto community turns its attention to the potential approval of a spot Bitcoin ETF, Solana (SOL) has emerged as a standout performer, gaining over 30% in the past month and securing a position as the fifth-largest cryptocurrency.
Notably, the crypto asset managed to surge as high as $126 on December 25 before retracing to $89 twice this month. That said, amidst these developments, Solana’s resilience has caught the attention of renowned crypto analyst Ali Martinez, who predicts a continued upward trajectory.
In a post on X Tuesday, Martinez highlighted the SOL’S hourly chart, identifying a bullish flag pattern. In this particular pattern, traders establish profit targets by measuring the height of the initial flagpole (F1) and projecting that distance to the second flagpole (F2) from the lowest point for the breakout swing.
The pundit explained that the patterns indicate the potential for a significant upward move if SOL can decisively close above the $110 resistance level.
“If this pattern holds, we might see SOL heading toward an ambitious target of $163,” he wrote.
That said, positive indicators in its ecosystem metrics accompany Solana’s recent surge. On-chain data reveals heightened buyer enthusiasm, marked by an 11.53% surge in trading volume over the past 24 hours. Notably, Solana bulls have entered the “Greed” territory, signalling potential capital inflow in the days ahead.
The resurgence of Solana extends beyond its core cryptocurrency to its meme coin ecosystem. Despite challenges faced by flagship meme coin BONK, recent market activity suggests a potential revival, with the token seeing a 28% increase in the last 24 hours.
The coin also seems to be attracting big investors again, with whales re-entering the fray. On Tuesday, crypto analysis firm Lookonchain highlighted a whale that acquired 3.29 billion BONK for 386 SOL, valued at around $40,000. Notably, this investor had previously earned around $7 million from BONK trades after accumulating the coin over a period of about 9 months.
Additionally, Solana’s growth is further underpinned by an expanding developer community, with over 2,500 monthly active developers and a 50% developer retention rate, according to the Solana Foundation. This uptick in developer engagement bodes well for the network’s health and sustainability, showcasing increased confidence in Solana’s capabilities.
That said, as SOL approaches critical resistance levels, the crypto will likely keep a close eye on the potential fulfilment of the $163 target suggested by Martinez.
At press time, the crypto asset was trading at $101.29 after posting a 6.81% gain over the past 24 hours.