Solana (SOL), one of the market’s largest digital assets by market capitalization, has been in a phase of price consolidation, fluctuating between $140 and $150. This stabilization follows a notable drop that saw SOL plunge to $109 on August 5th, with a modest recovery since then.
Despite its rebound, Solana has faced challenges breaking above upper resistance levels, echoing a pattern similar to Bitcoin’s (BTC) price movements in the past week. According to crypto analyst “XForce,” Solana’s current position mirrors Bitcoin’s price action, albeit on a different scale. The analyst suggests that Solana is in a “wave 4” consolidation phase, set to enter a “wave 5” which could potentially double its previous all-time high of $259 from the November 2021 bull run. This would project a price target between $400 and $500, suggesting a possible 250% increase from its present levels.
However, the analyst also cautions that in the near term, Solana might experience a more pronounced correction, potentially falling by 22% to $110 or even more sharply to $75. This forecast is based on the assumption that Solana could enter a “wave Y” correction.
Adding to the technical analysis, Ali Martinez has identified a potential head and shoulders pattern on Solana’s hourly chart. This pattern indicates that if Solana drops below the $141 level, it could trigger a correction bringing prices down to the $122 range. This level is crucial for Solana bulls, as falling below $141 could undermine the token’s macro uptrend, which has been maintained since February. If the $122 level fails, the scenario outlined by XForce could materialize, with Solana possibly retesting the critical $100 support. Breaching this level might affect Solana’s market sentiment and investor confidence significantly.
Currently, SOL is trading at $144, down over 2% in the last 24 hours, reflecting the broader market’s movements. For the bulls to surpass the $200 mark, key levels need to be addressed. On the SOL/USDT daily chart, the consolidation range for SOL started at $153, the initial barrier before testing the next obstacle at $163. Overcoming these two levels in the short term is essential to anticipate a move towards $183, eventually aiming for the $200 mark.
The 1D chart indicates SOL’s sideways price action. This delicate balance of consolidation and resistance levels forms the backdrop for Solana’s future performance, highlighting both opportunities and risks for investors.
 stabilizes between $140-$150 after a drop, eyeing a potential 250% surge to $500. Key levels and patterns crucial for SOL's next move.){kind=link}