- SOL retraces to $170 level after hitting 3-month high of $180, while maintaining 13% monthly gains.
- Analyst identifies bullish flag pattern with ambitious targets ranging from $383 to $829.
- Technical indicators suggest potential short-term pullback with $147 support level in focus.
Solana’s latest market performance presents a complex picture of immediate retracement amidst broader bullish signals.
The cryptocurrency recently touched $180, marking its highest point since January, before experiencing a correction to the $170 range.
Despite this pullback, SOL maintains an impressive 14% monthly gain, aligning with Bitcoin’s upward momentum toward historical highs.
This sustained strength has caught the attention of market analysts, particularly Xanrox, who identifies a developing bullish flag pattern.
Solana shows temporary consolidation phase
The pattern formation suggests a temporary consolidation phase, visible on the three-day chart timeframe. Drawing from Elliott Wave analysis, Xanrox highlights how Solana’s previous wave (3) delivered exceptional returns exceeding 2,600% last year, setting the stage for an anticipated wave (5) advance.
Fibonacci retracement levels provide specific price targets for this potential upward movement. The initial objective sits at $383.39 for Solana, corresponding to the 0.382 Fibonacci level and representing a 119.9% increase from the current breakout point.
However, shorter-term analysis reveals developing weakness patterns on the four-hour chart. Technical indicators point toward a possible retest of the $147 support level before any significant upward movement resumes.
The Relative Strength Index currently registers at 71, while the Stochastic Oscillator reads 81.2, both suggesting overbought conditions that typically precede price corrections.
