The Solana price has surged over 33% prior to now two weeks, and based on crypto analyst Ali Martinez (@ali_charts), this could possibly be the precursor to a much larger rally. Within the weekly chart (SOL/USD), the Solana price exhibits a significant bullish pattern, suggesting a possible surge beyond the $1,400 mark.
Is $1,400 Next For Solana?
Martinez highlighted a “bull flag” formation, a classic continuation pattern in technical evaluation that would signify a major upward movement in Solana’s value within the upcoming months. “The bull flag no one is talking about!” Martinez commented.
Solana bull flag pattern | Source: X @ali_charts
The chart displays a bull flag pattern, identified through a pointy upward trend followed by a consolidating downward channel. This pattern began forming after a powerful price increase from mid-September last 12 months, where Solana ascended from around $17.50 to a peak of roughly $210. Following this rise, the value began to consolidate, forming a downward sloping channel that implies a period of accumulation and potential buyer exhaustion after the initial surge.
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The flagpole, a vital part of the bull flag pattern, was established by the initial steep increase in price, while the flag itself is represented by the following consolidation phase. This phase is depicted by a series of upper lows and lower highs, converging right into a narrowing point that implies decreasing volatility and tightening price ranges—a typical precursor to a possible price breakout.
In line with Martinez’ evaluation, the value of Solana stands at $157.98 and thus slightly below the upper trendline of the channel. The consolidation has formed inside a good range, with the upper and lower boundaries clearly marked by trend lines converging towards a degree on the chart projected to occur soon. The critical support level, as observed from the consolidation phase, is near the $130 mark, with the resistance level just barely above the present price, around $160.
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If the bull flag pattern holds true to its typical implications, a breakout could possibly be expected upon reaching the apex of the converging trend lines. Historically, the projected goal of a bull flag breakout is estimated by measuring the length of the flagpole—greater than 1,000% in SOL’s case—and projecting it upwards from the purpose of breakout or from the support level (in a more conservative alternative).
This calculation would position the potential price goal for Solana above $1,400, based on Martinez’ chart. Within the more conservative scenario, Solana could also reach at the least $1,300.
Key Resistance Levels For SOL
On the best way towards the big price goal, there are several resistances and intermediate price targets to beat. Within the short term, the 0.618 Fibonacci retracement level at $163 is an important. Often known as the “golden ratio,” that is currently probably the most watched resistance.
Afterwards the 0.786 Fib at $205 must be watched as a final major resistance before a price returns to the November 2021 all-time high at roughly $260.
The Fibonacci extension levels further offer potential targets if the Solana price surpasses its original high. The 161.8% extension at $415.23 marks a major goal for initial price discovery.
Subsequent levels just like the 261.8% extension at $666 and the 361.8% level at $918 are crucial in a really strong trend where the value extends well beyond the initial range. Remarkably, even the 423.6% extension only predicts a rally in Solana’s price as much as $1,074.
Solana price, 1-week chart | Source: SOLUSD on TradingView.com
Featured image created with DALL·E, chart from TradingView.com