Solana (SOL), one of the most prominent cryptocurrencies on the market, has been in the spotlight due to a technical pattern that could herald an exciting resurgence. This article explores the main ideas behind this development and the key details.
After reaching a high of $260 in November 2021, Solana saw a significant decline in value, falling to a low of $8 in late 2022.
This fall reflected the general decline in the crypto market, aggravated by the fall of the FTX exchange platform, which especially affected SOL like so many other assets.
However, the year 2023 began with a positive turn for Solana. The price of SOL recovered from its low of $8 to almost $26 in early January, setting the stage for the formation of a technical pattern called the “inverted head and shoulders” (H&S), a classic indicator with which investors detect a bullish reversal in an asset.
This inverse H&S pattern began to take shape in January and extended until October 2023. It is characterized by a structure with a left shoulder, a head, and a right shoulder, suggesting a potentially bullish trend change.
A crucial aspect of this pattern is the “neck” resistance, identified around $25.81. Solana price has challenged this resistance on several occasions, and a decisive break above this level could signal a reversal for a very good uptrend.
Analyst Josh Olszewicz notes a stop loss for this trade idea just below the right shoulder, around $19.30.
$SOL iHS alert
chart is the chart, love it or hate
looks a helluva lot better than spot $ETH that's for sure pic.twitter.com/BEh7z2bUbO
— Josh Olszewicz (@CarpeNoctom) October 17, 2023
In the analysis, using tools such as Fibonacci extensions, possible price trajectories are plotted for SOL if it manages to break through the $25.81 level.
Targets are set at the 1.618 ($33.85) and 2.0 ($38.82) Fibonacci levels, which could result in potential gains of between 35% and 55% from the current price.
Digging into the volume profile (VPVR) shows that the most significant trading activity for SOL is around the $14 to $15 range, and there is another cluster of volume between the $20.83 and $19.30 levels, which coincides with the loss or stop loss marked by Olszewicz.
In conclusion, the inverse H&S pattern poses an extremely bullish outlook for Solana price.
However, it is essential to wait for a confirmation of the breakout above the $25.81 level, ideally supported by substantial trading volume, before considering bullish projections.
SOLANA NEWS IN THE MARKET
Solana (SOL) is currently trading at a price of $23.80 USD, has seen an increase of 6.53% in the last seven days and a notable growth of 24.41% in the last month. These figures reflect positive performance in the short term, suggesting renewed investor interest in the cryptocurrency.
SOL’s market capitalization amounts to $9.95 billion dollars, consolidating itself in seventh position in the market capitalization ranking according to CoinMarketCap.
This current data provides a snapshot of Solana’s current status in the competitive world of cryptocurrencies and is a reminder of the importance of closely monitoring its journey in the market.
Investors and analysts will continue to closely watch SOL for possible bullish moves in the near future driven by its constant evolution and possible resurgence in the market.
