Solana (SOL) successfully broke above a bullish pattern and retested its support, setting the stage for a potential price surge to $250. After a week-long price increase, SOL experienced a minor correction, but the outlook remains positive as it retests a bullish formation.
Solana’s Bullish Move
According to CoinMarketCap, Solana’s price increased by over 6% in the past week. However, the last 24 hours saw a slight setback with a 0.83% decline. This recent dip impacted its weighted sentiment, indicating increased bearish sentiment on July 27.
Despite this, SOL broke above a bullish pennant pattern, suggesting that a new bull run might be on the horizon. World Of Charts, a popular crypto analyst, highlighted that SOL’s recent retest of its support could trigger a rally, potentially pushing its price to $250, a new all-time high.
Is SOL to $250 Likely?
While the target of $250 may seem ambitious in the short term, deeper analysis reveals promising signs. According to Coinglass data, SOL’s long/short ratio increased after a dip, indicating more long positions in the market—a bullish signal.
Further analysis of SOL’s daily chart shows mixed signals. The Chaikin Money Flow (CMF) and Relative Strength Index (RSI) both registered downticks, hinting at continued price declines. Additionally, the MACD suggests a possible bearish crossover.
However, in a bullish market scenario, Solana could reach $188 before aiming for the $250 milestone. Conversely, if bearish trends persist, investors might see SOL drop to $176.
Conclusion
Solana’s recent price movements and technical indicators present a mixed outlook. While short-term corrections are possible, the potential for a significant rally remains if bullish patterns hold. Investors should watch market indicators closely as SOL navigates its path towards $250.