Solana (SOL), one in all the biggest digital assets out there by market capitalization, has been in a period of price consolidation, oscillating between the $140 and $150 price range. This era follows a big drop that saw SOL plummet to $109 on August fifth, with a modest recovery since then.
Nevertheless, despite its resurgence, Solana has struggled to interrupt above upper resistance levels, reflecting a pattern harking back to Bitcoin’s (BTC) price movements for the past week.
Solana Price Forecast
In line with crypto analyst “XForce,” Solana is currently positioned in a way that’s strikingly much like Bitcoin’s price motion, just on a special scale.
The analyst contends that Solana is probably going within the midst of a “wave 4” consolidation phase and is poised to enter a “wave 5” that would potentially double its current all-time high of $259, reached in the course of the November 2021 bull run.
This could imply a price goal of roughly $400-$500 for Solana at the highest of this market cycle, which could represent a price increase of nearly 250% from current market levels.
Nevertheless, the analyst also warns that within the near term, Solana could experience a deeper correction, with targets potentially as little as a 22% drop to $110 or perhaps a sharper decline to the $75 mark. This scenario relies on the analyst’s belief that Solana could enter in a “wave Y” correction.
Bearish Pattern Emerge, Threatening $100 Support
Adding to the technical evaluation, Ali Martinez has recently spotted a possible head and shoulders pattern forming on Solana’s hourly chart. This pattern suggests that a breach below the $141 level could trigger a correction, sending Solana right down to the $122 range.
This level is of particular importance for Solana bulls, as a breach below $141 could potentially jeopardize the token’s year-to-date macro uptrend, which has been in place since February.
If the $122 level is lost, the speculation put forth by XForce, the primary analyst, could come into play, with Solana potentially retesting the crucial $100 support floor. This could be a big test for the token’s long-term prospects, as a breach of this level could have broader implications for Solana’s overall market sentiment and investor confidence.
Currently, SOL is trading at $144, down over 2% within the 24-hour timeframe, mirroring the broader market’s price motion. Nevertheless, within the case of further catalysts for the token’s price motion, there are also crucial levels to beat if the bulls need to get past the $200 mark.
On the SOL/USDT every day chart, the primary hurdle that led to the present consolidation range for SOL was at $153, as the primary barrier that prevented a test of the following obstacle at $163. Gaining these two levels within the short term will probably be key to anticipate a move towards $183 before a leg as much as the $200 mark.
Featured image from DALL-E, chart from TradingView.com