Experts believe Solana is on the path to rallying to $250 after the coin's price successfully broke above a bullish pattern and retested its support level.
After a week-long price increase, Solana [SOL] experienced a minor price correction. Despite this, the token's bullish pattern retest suggests that another Solana bull market is on the horizon.
According to CoinMarketCap, SOL’s price increased by over 6% in the last seven days. However, the past 24 hours saw a small setback with a 0.83% decrease in value.
This minor decline hurt its weighted sentiment on July 27th, indicating a rise in bearish sentiment around the token.
Despite this, Solana broke the neckline with an intraday rise of 3.68%.
The token has jumped 12% since last Friday, reaching a market price of $191.90 and a market cap of $89.12 billion.
Technical Indicators and Market Sentiment
Examining the technical indicators, the RSI line enters overbought territory in the 4-hour chart. This suggests a minor retest of the bullish breakout might occur.
Moreover, a recent Doji candle increases the possibility of evening stars in the 4-hour chart.
Despite the decline in weighted sentiment, this might not signal the start of a bear rally. Recently, Solana broke above a bull pattern, which indicates potential bullish momentum.
A popular crypto analyst, World Of Charts on X (formerly Twitter), highlighted that Solana broke above the bullish pennant pattern and retested its support.
$Sol
— World Of Charts (@WorldOfCharts1) July 27, 2024
Breakout & Retest Has Already Confirmed Send It Towards 250$✅#Crypto #Sol #Solana https://t.co/OrS11frVbC pic.twitter.com/y0Y3EdHbfY
The bullish pennant pa appeared in March, and since then, Solana's price has been consolidating within the pattern until it broke out a few days ago.
The analyst's tweet also noted that the recent retest of the support could trigger a bull rally, pushing Solana to $250, a new all-time high.
Also read: 10 Top Crypto to Hold for the Next Half of 2024
Solana Bull Market Predictions and Analysis
Considering the ambitious target of reaching $250, it's essential to examine Solana's state to understand the expectations.
According to Coinglass' data, Solana's long/short ratio registered an increase after a dip. This metric indicates more long positions in the market than short positions, which is a bullish signal.
Analyzing Solana's daily chart, the Chaikin Money Flow (CMF) registered a downtick, as did its Relative Strength Index (RSI).
These technical indicators suggest a continued price decline. Additionally, the MACD suggests a possible bearish crossover.
In case of a bullish market takeover, Solana might touch $188 again before aiming for the $250 mark. Conversely, as market indicators indicate, Solana's price could drop to $176 if the bears dominate.
Network Strength and User Activity
The growing strength of the Solana network is fueling the surge in the SOL token price.
With a Total Value Locked (TVL) of $5.667 billion, Solana ranks as the third-biggest blockchain in TVL.
A milestone in active users further demonstrates the strength of the network.
According to data from The Block, the number of active addresses on the Solana network has hit 2 million, which means the network's popularity and user base is growing daily.