Despite reaching a new all-time high at $264 on November 23rd, Solana (SOL) has yet to enter a price discovery period. The altcoin has been in a clear downtrend over the past 25 days, forming a series of lower highs (LHs) and lower lows (LLs) in the four-hour time frame.
Solana’s Short-Term Outlook: Bearish
The altcoin’s bearish outlook in the short term is evident from its price action in the four-hour chart. The chart shows a clear downtrend, with SOL’s price making lower highs and lower lows over the past 25 days.
Solana 4-Hour Chart
SOL/USD Price Action Over the Past 25 Days
Solana’s Long-Term Outlook: Bullish
Despite the short-term bearish outlook, Solana’s long-term charts indicate an imminent rally. Multiple analysts have called for the altcoin’s new all-time high.
Solana’s ‘Bullish Flag’ Fractal Predicts Rally to $300
The daily chart shows that Solana is repeating a fractal pattern from January 2024, which led to a triple-digit rally in Q1 2024. The bull flag witnessed a breakout after 30 days, whereas the current pattern has taken shape over the past 25 days.
SOL/USD Bull Flag Fractal
January 2024 and December 2024
The bull flag fractal is a bullish confluence that has been observed in both periods. Additionally, other bullish confluences include the price retest of the 50-day exponential moving average (EMA) level (blue line) and the relative strength index (RSI) resetting under the 50 mark.
Solana’s Long-Term Targets
Considering Solana repeats a bullish fractal breakout, the altcoin’s immediate target is based on the 1.618 Fibonacci extension, which is around the $320 range. A long-term target of 2.272 FIB extension remains around $440.
Related: Price Analysis 12/16: SPX, DXY, BTC, ETH, XRP, SOL, BNB, DOGE, ADA, AVAX
Analyst’s Prediction: ‘Absolute Monster Run’
For the majority of Q4, Solana’s price outpaced both Ether (ETH) and Bitcoin (BTC), according to Glassnode. However, over the past 30 days, Ether and Bitcoin have registered an uptick of 26.96% and 17.49%, respectively, whereas Solana has significantly lagged with a 1.61% return.
This has led the crypto community to ‘troll-posting’ on Solana, but Jelle, an anonymous crypto trader, said that the altcoin is preparing for an ‘absolute monster run.’
SOL/BTC, SOL/ETH, and SOL/USD Pairs Testing Support
Source: Jelle/X
The analyst also said that Solana is testing its support levels against Tether’s USDt (USDT), ETH, and BTC trading pairs, further strengthening the possibility of a bounce.
Independent Trader’s Analysis
Meanwhile, Zer0, an independent trader, dismissed the fear, uncertainty, and doubt against SOL, saying its price action was a ‘simple breakout and retest’ of the previous resistance turned support range.
However, Daan Crypto, a full-time crypto investor, emphasized that SOL needs to break above $235 in the short term to confirm a bullish break of structure (BOS) in the four-hour chart and establish a new higher high trend for the altcoin.
Related: Crypto ‘Eating TradFi’s Lunch’ as $5.75B Coinbase Revenue Beats Nasdaq
Conclusion
Solana’s long-term charts indicate an imminent rally, with multiple analysts calling for the altcoin’s new all-time high. The altcoin’s bullish fractal pattern from January 2024 suggests that Solana is ready to repeat its previous performance and reach a triple-digit rally in Q1 2025.
While the short-term outlook is bearish, the long-term prospects look promising, with Solana poised to break out of its current range and reach new heights. As always, investors should conduct their own research and make informed decisions based on their individual risk tolerance and investment goals.
Related Resources
- Solana’s Price Chart: View the latest price action and trends for Solana (SOL) on our platform.
- Solana’s Technical Analysis: Get in-depth analysis of Solana’s technical indicators, including moving averages, RSI, and more.
- Solana’s News and Updates: Stay up-to-date with the latest news and updates on Solana, including price movements, market trends, and more.