Solana (SOL) Ripe For Price Discovery, Analyst Eyes $600 Target

Rubmar Garcia

Last Updated: August 27, 2024 1:00 am

3 mins read

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Market watchers have praised the Solana (SOL) price action throughout the month. The fifth-largest cryptocurrency by market capitalization has displayed a strong performance despite the market shakeouts, recently reclaiming the $160 support level. Analysts suggest that SOL might repeat history and kickstart a rally toward a new all-time high (ATH) soon.

Solana Breaks Out Of Consolidation Range

In August, Solana’s strength was tested during the market retraces. Several analysts deemed SOL one of the strongest assets this month, noting its performance in the last three weeks.

SOL’s price dropped over 30% during the first crash, falling to $110 before recovering. A week later, the token saw another retrace back to the $140 support level but maintained a sideways move between the $140-$155 range until Saturday.

Some market watchers claimed the token was in a “great place” to accumulate as it was “still in the same sideways range, while the rest of the market made lower lows.” Moreover, they predicted that Solana would take off as soon as Bitcoin (BTC) surged.

Since then, Bitcoin’s price has propelled 10%, hovering between the $63,000-$64,000 range over the weekend. SOL has also seen a favorable price action, soaring 13.9% in the last three days.

SOL broke above the $155 resistance level on Saturday after an 8% surge. The cryptocurrency continued its ascendant trajectory, reaching the $162 mark before retracing. Throughout the weekend, the token continued to move within this new range.

Is SOL About To Rally To $600?

Solana’s recent performance has sparked a bullish sentiment among investors and experts. Some analysts have noted that holding the current levels could kickstart SOL’s next leg up. Ali Martinez recently shared that the $164 resistance level was key for Solana’s rally.

Per the analyst, the token has been shaping up for an “Adam & Even” pattern, which suggests a potential rise to $164. If the token were to clear that resistance, its price could see a 33% surge toward the $220 price range, a level not seen since late 2021.

Similarly, Altcoin Sherpa set the $165 resistance as a level to watch. Sherpa considers that SOL is moving within “an interesting level” but suggests that investors “be patient for a break of $165.”

According to the post, a break above this level could propel the price toward the $188 and $201 resistance levels. Meanwhile, a failed attempt could send the price to the previous range. However, Sherpa believes the cryptocurrency will “solidly” break its ATH price in Q4, regardless of the outcome.

Crypto analyst Jelle stated that SOL is “looking more and more ready for expansion, especially against ETH.” To Jelle, Solana’s chart looks ripe for price discovery since it resembles SOL’s performance three years ago.

Per the analyst, the token is “holding above the RSI midlevel, while chopping around the 25-week EMA” like in 2021. This performance was followed by a massive surge that drove the price to SOL’s ATH of $259.

Based on this, Jelle considers that Solana is ready to rally toward a new ATH between the $450-$600 range this cycle. SOL is currently trading at $160, a 2% and $13.9% surge in the daily and weekly timeframes.

Solana, SOL, SOLUSDT — SOL’s performance in the weekly chart. Source: SOLUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies –or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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