Solana Potential Rebound: Can Bulls Hit Their $30 Target?

Christian Encila

1 year ago

3 mins read

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The Solana (SOL) community has been closely monitoring the crypto’s price movements as it endures a relentless downward trend. Notably, this corrective phase has adhered to a distinct pattern, encapsulated within two converging trendlines, forming what technical analysts identify as a descending wedge formation.

Historically, such patterns have acted as precursors to substantial bullish surges upon breaking free from the upper resistance. The question that now lingers in the minds of crypto enthusiasts: Is Solana poised for a bullish turnaround, or should we brace for more market turbulence?

At present, Solana is trading at $17.86, according to CoinGecko data. Over the last 24 hours, it has witnessed a modest decline of 0.5%, contributing to a seven-day slump of 10.4%. The intriguing aspect is that SOL’s price currently hovers near the upper boundary of the descending wedge pattern, a crucial juncture where traders are grappling with substantial selling pressure.

This position implies that Solana may be poised to either break free from its recent struggles or face further rejection at this trendline resistance.

SOL seven-day price action. Source: Coingecko

Awaiting SOL’s Bullish Breakout

For those harboring bullish sentiments for SOL, a prudent approach may be to await a clear breach of the aforementioned resistance. If such an event occurs, it could trigger a rally pushing Solana toward a potential target of $22.21. Beyond that, the cryptocurrency might set its sights on even loftier goals, with price milestones at $25.43 and $32 becoming realistic objectives.

However, it’s essential to note that in the volatile world of cryptocurrency, the bearish sentiment can swiftly gain traction. In such a scenario, SOL could experience a further decline of approximately 11%, potentially targeting the $16.5 price region.

Solana market cap currently at $7.4 billion. Chart: TradingView.com

Solana’s Fundamentals Remain Strong

One trader, known as Altcoin Sherpa on the social media platform X, offers a perspective that combines long-term optimism with short-term caution. Altcoin Sherpa views Solana as a fundamentally robust crypto project poised to perform well during the next bull market.

$SOL: Big sell off yesterday, I didn’t catch any of it. Next point of interest is the $17-$15.50 area. Lots of scared investors in regards to a potential FTX holdings liquidation. #Solana https://t.co/7lfzea6XA7 pic.twitter.com/1f8XEJFlES

— Altcoin Sherpa (@AltcoinSherpa) September 10, 2023

Although the trader remains long-term bullish on SOL, the path to bull territory may not be a smooth one, Altcoin Sherpa implied:

“As a network, SOL is still a good one and will probably be a solid bet for the next bull run. I’ve got a long-term bag that I’ll just hold because I expect great multiples on it later on. But in the short term, it’s likely going to be painful.”

Solana’s price movement remains a focal point of interest in the cryptocurrency community. The descending wedge formation has set the stage for a potentially significant breakout or breakdown, and traders are advised to stay vigilant as the market dynamics unfold.

Whether Solana’s next move is bullish or bearish, the crypto world eagerly awaits to see where this innovative blockchain platform will steer its course.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Morpheus Trading Group

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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