Solana is showing an inverted head and shoulders pattern on its 4-hour chart, with the key level at $185. As the market recovers, the recent rise in SOL tokens suggests it could rally to $250.
With Bitcoin nearing $70,000 and the altcoin market booming, Solana, now the fourth largest cryptocurrency, is poised for a breakout. The $250 target is the next big milestone. Will Solana keep up the momentum and hit $250 this week?
Solana’s Rising Trend and Recent Breakout
Solana is currently experiencing a rising trend, marked by a solid uptrend on the 4-hour (4H) chart. The token has shown multiple bounce-backs and has surpassed the $190 mark, supported by a bullish trendline that reflects a 55% increase.
However, resistance at the $185 level has caused some sideways movement, forming an inverted head and shoulders pattern. This pattern, coupled with the broader market recovery, has led to a breakout above the neckline with an intraday rise of 3.68%. Since last Friday, Solana has seen a 12% jump, fueling a streak of bullish candles and pushing the price towards the $200 psychological milestone.
Solana Price Chart. TradingView
Currently, Solana (SOL) trades at $191.90 with a market cap of $89.12 billion. Technical indicators show the RSI line entering overbought territory on the 4H chart, suggesting a possible minor retest of the bullish breakout. Additionally, the appearance of a Doji candle on the 4H chart raises the likelihood of evening stars forming, indicating potential shifts in momentum.
Solana’s Surge and Future Prospects
Solana’s growing network strength is driving up the SOL token price, with the Total Value Locked (TVL) now at $5.667 billion, making it the third-largest chain by TVL. Additionally, active addresses on the Solana network have reached 2 million, according to The Block.
Daily Active Addresses on Solana Network. Source: TheBlock
The recent breakout of the inverted head and shoulder pattern faced resistance at the 38.20% Fibonacci level. However, as the broader market recovers, crossing above the $200 mark could trigger the next phase of Solana’s bull run. Based on Fibonacci retracement levels, SOL could potentially reach $231 or $253 in the coming days.
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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