While the Solana (SOL) bull run briefly stalled after hitting a peak, analysts believe a new all-time high is in the works, with some entering long positions ahead of the expected rally.
Six days ago, Solana shattered its 2021 all-time high and established a new peak, coinciding with Bitcoin’s ongoing price discovery phase. However, unlike Bitcoin, Solana’s rally quickly faded after surpassing its previous ATH without venturing far into new price territory, as the token retraced soon after.
Specifically, Solana hit an ATH of $260 last Saturday, while its 2021 peak was $260. Interestingly, SOL’s price has since dropped to $222 after this new top. However, analysts remain optimistic, believing Solana is poised for a new price top.
Solana Ready for New ATH
Today’s SOL crypto news: In an analysis shared on TradingView, market watcher NuriGG suggested that Solana is primed for a new all-time high. Convinced by his technical analysis, NuriGG revealed that he opened a long position in SOL, positioning for the ATH rally.
Notably, he entered the long position on SOL around the $230 level, targeting a price of $294.25. The setup represents a calculated risk with a risk/reward ratio of 5.08, meaning the trader targets a 5X return on the amount he is risking.
The Technical Breakdown
Analyzing the 4-hour chart, NuriGG identified a clear ascending channel pattern, indicating bullish momentum for Solana. With an entry price of $230, the analyst has set a stop-loss at $216.15 to mitigate downside risks. At the same time, he is targeting a potential profit of 28.49% at $294.25.
At the target level, the trade could yield a profit of approximately $2,269.46, based on a position of 19.455 SOL tokens. Conversely, at the stop-loss level, the trader looks at potential losses of $750. Notably, this trader committed around $6,535 to the trade.
Considering that Solana has already surged to $240 since NuriGG opened the position, the trade is currently profitable. It has an unrealized gain of around $252 as the market price has moved favorably since the entry.
Other analysts on TradingView are also targeting around $300 as Solana’s next all-time high. This is expected within the next few days as anticipation of Bitcoin reaching $100K regains momentum. At press time, Bitcoin is hovering above $96,000.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
