Solana’s price action shows a double bottom pattern with a key level at $180. The rising ADX line in the DMI indicator indicates growing momentum in the trend. If Solana’s price breaks above $180, it could rise to $250.
As the crypto market recovers and aims for a new all-time high in 2024, the altcoin sector is becoming increasingly active. With Bitcoin trading at $67,913, the overall market could soon regain its $3 trillion valuation. During this recovery, the Solana ecosystem is growing quickly, and the SOL price might soon break above the $200 mark. The question now is whether Solana will have a breakout rally and surpass $200 in July 2024.
Solana’s Price Surge and Breakout Potential
In the past two weeks, Solana’s price has surged by 40%, climbing from $131 to $184. It has recently pulled back slightly by 1.69%, now trading at $181. Solana holds the #5 spot with a market cap of $84.25 billion and ranks #3 in the DeFi sector with a total value locked (TVL) of $5.39 billion.
Source: TradingView
The price recovery from the $130 demand zone has created a double bottom pattern, with the neckline at $185. Given the recent streak of four bullish candles, a breakout rally above $200 is highly likely.
The 75% increase in trading volume, reaching $3.25 billion, adds strength to the potential for further gains.
The daily RSI has reached a borderline overbought zone due to a significant recent jump. However, the absence of bearish divergence suggests that the uptrend could continue, supported by strong demand in the recovering market.
The DMI indicator shows an uptick in the ADX line following a bullish crossover of the VI lines, further enhancing Solana’s breakout prospects.
Solana’s Path to $250: Key Technical Levels
Examining the correction phase with Fibonacci levels reveals that the double bottom neckline is just 15 points below the $200 level. The current recovery trend is poised to break through this neckline, potentially unleashing momentum that could push the price above $200.
Based on Fibonacci levels and the double bottom pattern, the uptrend in Solana’s price has the potential to reach $250.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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