Solana (SOL) showcased strong resilience on Friday, marking a strong resurgence after a brief consolidation period over the past three or so days.
Notably, the cryptocurrency surged as high as $170 in the evening, accompanied by a significant spike in trading volume. According to CoinMarketCap data, buyer activity surged by over 57%, reaching approximately $3.2 billion, with the asset’s market cap growing by around 7% to tap $78.2 billion over the past 24 hours.
This bullish trend follows robust support around the $125 mark observed consistently over recent months, fostering positive sentiment within the market. In a tweet, popular crypto analyst Crypto analyst Ali Martinez drew attention to an overlooked bullish pattern on the Solana chart, referring to it as “The bull [pennant] nobody is talking about.”
According to Martinez’s analysis, this pattern suggests the potential for Solana to reach approximately $1,400 by either the end of 2024 or early 2025 following a breakout.
Notably, earlier this month, the analyst foresaw an impending surge in SOL’s value, drawing parallels between current market indicators and those observed in 2021. Specifically, the analyst highlighted similarities in price patterns and the Relative Strength Index (RSI), which is currently around 40 for Solana, indicating a potential undervaluation. This level mirrors conditions preceding the 2021 bull run, during which SOL recorded gains of approximately 1,030%.
Echoing Martinez’s bullish sentiment, analyst Crypto Faibik urged investors to accumulate SOL “before it’s too late” stating that the cryptocurrency’s price was on the verge of a bullish pennant breakout. However, unlike, Martinez, Faibik projected a target of $1,000.
Meanwhile analyst Rekt Capital, in a newsletter published Friday, emphasized Solana’s consolidation phase between $122 and $170. Rekt Capital emphasized the importance of a weekly close above the upper resistance to sustain upward momentum.
“Ultimately, SOL is consolidating from $122 (green) to $170 (red box) and once SOL is ready to breakout from this range, this breakout will be confirmed via a Weekly Close above the red boxed resistance,” he wrote.
However, not all analysts share the same bullish outlook. Analyst “Swallow Premium” on TradingView warned of potential downside risk for Solana, cautioning about a possible price drop to around $80 if the cryptocurrency gets rejected under the 100 EMA (Exponential Moving Average).
Meanwhile, amidst these analyses, excitement within the Solana community has also been mounting as anticipation builds around a potential spot Solana ETF approval. Wall Street firms VanEck and 21Shares have filed applications with the SEC, signaling growing institutional interest in Solana investment products.
At press time, SOL was trading at $170.39, reflecting an 8.79% growth over the past 24 hours.
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