Despite hitting an all-time high of $264 on November 23, Solana (SOL) has not yet entered a price discovery period. The altcoin has shown a clear downward trend over the past 25 days, forming a series of lower highs (LH) and lower lows (LL) over a 4-hour period.
Solana 4-hour chart. Source: Cointelegraph/TradingView
Despite the bearish outlook for SOL in the short term, long-term charts indicate an imminent rally, with several analysts calling for a new all-time high for the altcoin.
Solana’s “bull flag” fractal predicts a rise to $300.
As seen on Solana’s daily chart, altcoins have been repeating a fractal pattern like a bull flag since January 2024, leading to a triple-digit rally in the first quarter of 2024.
SOL/USD bullish flag fractal, January 2024 and December 2024. Source: Cointelegraph/TradingView
The bull flag witnessed a breakout after 30 days, whereas the current pattern was formed over the last 25 days. Additionally, other bullish confluences observed in both time periods are the price retest of the 50-day exponential moving average (EMA) level (blue line) and the relative strength index (RSI) resetting below the 50-day line.
Given Solana’s repeat of the bullish fractal breakout, the altcoin’s immediate target is based on the 1.618 Fibonacci extension, a range around $320. The long-term target for 2.272 FIB expansion remains around $440.
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The analyst said Solana was poised for an “absolute monster race”.
According to Glassnode, Solana’s price outperformed Ethereum (ETH) and Bitcoin (BTC) for most of the fourth quarter. However, while Ethereum and Bitcoin have posted gains of 26.96% and 17.49% respectively over the past 30 days, Solana has lagged far behind with a return of 1.61%.
This prompted the cryptocurrency community to ‘troll post’ Solana, but anonymous cryptocurrency trader Jelle said the altcoin was gearing up for an ‘absolute monster run’.
The pairs SOL/BTC, SOL/ETH, and SOL/USD are testing support. Source: Jelle/X
The analyst also said Solana is testing support levels for Tether’s USDt (USDT), ETH, and BTC trading pairs, further strengthening the chances of a rebound.
Solana daily chart analysis. Source: Zer0/X
Meanwhile, independent trader Zer0 dismissed fears, uncertainty and doubts about SOL, saying the price action was “a simple breakout and retest” that shifted from previous resistance to a support range.
However, full-time cryptocurrency investor Daan Crypto confirmed a bullish breakout (BOS) of the structure on the 4-hour chart and emphasized that SOL needs to surpass $235 in the near-term to establish a trend of new higher highs for the altcoin. .
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.