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Solana Bullish Pattern Signals Massive Gains Ahead – 2021 Rally Could Repeat

DATE POSTED:October 10, 2024

Solana (SOL) is currently trading at the lower end of a monthly range that began in March, positioning the asset at a pivotal level that will dictate its price action in the coming months.

As the broader crypto market faces uncertainty, analysts and investors closely monitor whether this range represents an accumulation phase that could precede a significant rally.

Top analyst and investor Mister Crypto recently shared a technical analysis comparing Solana’s current price structure to its 2021 performance, highlighting similarities that suggest a potential bullish breakout. His analysis reflects optimism amid market anxiety, with many believing Solana may be on the verge of another strong upward movement.

While caution remains, investors await confirmation that Solana’s recent range-bound trading is laying the foundation for a sustained rally. The outcome in the next few weeks could significantly impact Solana’s trajectory for the rest of the year.

Solana Price Action: Accumulation Or Bull Trap?

Solana (SOL) has been trading within a range of $210 to $110 since mid-March, and while some investors are starting to believe this could be a bull trap rather than accumulation, others remain cautiously optimistic. 

A growing sentiment suggests that Solana’s prolonged sideways movement may not lead to the much-anticipated breakout but could lead to further declines. Despite these concerns, prominent analyst Mister Crypto provides a more bullish perspective.

In his latest analysis, Mister Crypto compares the current market sentiment around Solana to that of 2021, just before the asset soared to new all-time highs. He highlights the similarities in market fear and uncertainty that preceded Solana’s previous explosive rally.

According to him, such fear-driven consolidation is often a signal of bullish patterns taking shape, with the potential for substantial gains once the market recovers.

Solana bullish pattern similar to 2021.

Mister Crypto refrains from setting a specific price target but suggests that Solana’s next major move could surpass its all-time high of $260. While the current mood remains cautious, his analysis provides hope that Solana may be preparing for another significant upward move, as historical patterns have shown similar price behavior before major surges.

The coming weeks will likely be decisive for Solana as traders and investors wait to see if it will break out of its range or continue to face downside pressure.

SOL Key Levels To Watch

Solana (SOL) is currently trading at $138, following a 9% retrace from its daily 200 moving average (MA) at $152. This drop marks a significant loss of momentum, as the price also fell below the daily 200 exponential moving average (EMA) at $140—a crucial support level. Losing the 200 EMA raises concerns for further downside potential in the coming weeks.

SOL trading below both 1D 200 EMA & MA.

For bulls to regain control, the price must reclaim the 200 MA and EMA, and push above the critical resistance level at $160. A surge above this threshold would indicate renewed bullish momentum and the potential for Solana to rally higher. However, if SOL fails to recover these key indicators, it could signal a deeper correction.

If the price continues to decline, traders may see SOL head toward lower demand zones around $110, a level that has acted as strong support in previous months. Investors and analysts are watching closely to see if Solana can hold its current levels or face more downside pressure in the near future. The next few days will be pivotal for SOL’s price action and overall market direction.

Featured image from Dall-E, chart from TradingView