Market watchers have been praising Solana’s (SOL) price action over the past month. The fifth-largest cryptocurrency by market cap has put up a strong performance despite market turmoil, recently reclaiming the $160 support level. Analysts suggest that SOL could repeat history and begin a recovery towards a new all-time high (ATH) soon.
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Solana breaks out of consolidation range
In August, Solana’s strength was tested during market pullbacks. Several analysts considered SOL to be one of the strongest assets this month, highlighting its performance over the past three weeks.
SOL’s price dropped more than 30% during the initial drop, falling to $110 before recovering. A week later, the token returned to the $140 support level but maintained a sideways movement between the $140 and $155 range until Saturday.
Some market observers claimed the token was in a “great place” to accumulate as it was “still in the same sideways range while the rest of the market made lower lows.” Furthermore, they predicted that Solana would take off once Bitcoin (BTC) surged.
Since then, Bitcoin’s price has increased by 10%, hovering between the $63,000 and $64,000 range over the weekend. SOL has also seen favorable price action, rising by 13.9% over the past three days.
SOL broke above the $155 resistance level on Saturday after an 8% surge. The cryptocurrency continuation its upward trajectory, reaching the $162 mark before retracing. Throughout the weekend, the token continued to move within this new range.
Is SOL About to Surge to $600?
Solana’s recent performance has sparked bullish sentiment among investors and experts. Some analysts have noted that holding current levels could kickstart SOL’s next bullish leg. Ali Martinez recently shared that the $164 resistance level was key to Solana’s recovery.
According to the analyst, the token is shaping up to be an “Adam & Even” pattern, which suggests a potential rise to $164. If the token overcomes this resistance, its price could see a 33% increase towards the $220 price range, a level not seen since late 2021.
Similarly, Altcoin Sherpa has set the $165 resistance as a level to watch. Sherpa considers SOL to be moving within “an interesting level” but suggests investors “be patient for a breakout of $165.”
According to the post, a break above this level could propel the price towards the $188 and $201 resistance levels. Meanwhile, a failed attempt could send the price back to the previous range. However, Sherpa believes that the cryptocurrency will “solidly” break its ATH price in Q4 regardless of the outcome.
Crypto analyst Jelle stated that SOL “looks increasingly ready for expansion, especially against ETH.” For Jelle, Solana’s chart looks ripe for price discovery as it resembles SOL’s performance three years ago.
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According to the analyst, the token is “holding above the mid-RSI level while hovering around the 25-week EMA” as in 2021. This performance was followed by a massive surge that took the price to SOL’s ATH of $259.
Based on this, Jelle considers that Solana is poised to rally towards a new ATH between the $450 to $600 range this cycle. SOL is currently trading at $160, up 2% and $13.9% on the daily and weekly timeframes.
Featured image from Unsplash.com, chart from TradingView.com