Key Insights:
- Solana is testing a critical support level on the weekly chart.
- Positive results from the FOMC meeting could fuel a bullish breakout above $300
- Increased market activity and rising daily active addresses indicate a potential upside.
Solana price is currently testing a critical support level on the weekly chart, a point that has previously held strong in price action. The result of this test could dictate the next direction for Solana’s price, with the potential for a bullish breakout. If the price manages to hold above this support zone, analysts predict that it could surge to as high as $300 in the medium term.
Solana Price Daily Chart Analysis: Falling Wedge Pattern
The daily chart demonstrates a falling wedge pattern that commonly produces bullish outcomes as either a continuation or reversal pattern. The price maintains its position inside the wedge boundary as it shifted from $160 to the current area of $131.37. A price breakout above $132 would be an indicator for substantial bullish action since the pattern apex is approaching.
The downward price movement seems to be slowing down inside the falling wedge pattern which suggests an upcoming trend reversal. If Solana breaks above the resistance at $132, the price could move towards a target of around $280, as indicated by the chart. A bullish confirmation will appear through this breakout which might lead to additional gains within the short-term period.
RSI and Cumulative Volume Delta: Key Indicators for Reversal
On the daily chart, the Relative Strength Index (RSI) is currently at 43.18, indicating neutral momentum. Although the RSI is below the neutral mark of 50, it is showing some divergence suggesting that a bullish move could be on the horizon.
The Cumulative Volume Delta (CVD) indicates an upcoming breakout according to its current data. The indicator presents 528.29K as a positive value which suggests buyers currently dominate over sellers in market activity.
Potential Breakout and Solana Price Targets
According to market analysts Solana will experience a strong bullish breakout provided it can continue holding a position above its crucial support level. The Federal Open Market Committee (FOMC) meeting results could trigger this potential breakout. After market sentiment improves from the meeting investors would likely buy more Solana tokens which could propel its value past $300.
Solana currently maintains position above its key weekly chart support area. The expert analyst MarzellCrypto suggests that maintaining the current price level along with favorable market sentiment could trigger a medium-term breakout above $300. The price should reach $300 during the upcoming months as the recent resistance levels appear weakened.
The Solana weekly chart has noteworthy explosive potential according to analyst VipRoseTr because the cryptocurrency has spent over 300 days above its main support zone.
The analyst predicts a significant bull breakout that shows how Solana will probably break through several resistance barriers and start a new price period. The price projections indicate $222.90 as the short-term goal whereas $316.01 stands as the mid-term objective.
Rising Activity and Strong Market Sentiment
The market demonstrates clear indicators that Solana is capturing more attention from users. Network engagement has increased as the number of active addresses on the Solana network has increased throughout recent months. The continued increase in network usage demonstrates that Solana experiences increased attention from investors which creates conditions for potential growth in its price value.
Increased trader confidence emerges from the growing interest in derivatives trading on the Solana market. Open interest in Solana has shown a 6% surge during the last 24-hour period because traders anticipate an upcoming substantial price fluctuation.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.