Solana’s 30% Correction Sets Stage for Potential 91% Rally to $387?
Solana (SOL) finds itself at a pivotal moment as the cryptocurrency tests a critical support level around $200, with technical analysis suggesting the potential for a significant upward movement if current price levels hold.
After reaching an all-time high of $293 in January, SOL/USD has experienced a substantial correction, yet remains within a defined upward channel that could signal further gains ahead.
Solana is trading right now at about $201 after recovering from a recent decline down below $200. Since July 2024, the technical pattern that defines SOL’s price movement has demonstrated tenacity as the bitcoin recovers from the lower threshold of its rising channel. Consistent higher lows and lower lows of this channel formation point to a continuous upward trend perhaps.
Consistent with more general market anxiety and rising outflows, the recent downturn has seen SOL drop by almost 30% from its January peak. Market data indicates that the Chaikin Money Flow (CMF) indicator has reached an 18-month low, signifying the greatest capital outflow since August 2023. Notwithstanding these inflows, the price has kept support above the critical $200 mark.
Solana ETF Hopes Surge Amid Strong Institutional Interest
Retrenching from past optimism levels, the Net Unrealized Profit/Loss (NUPL) indicator has entered the Fear zone. According to historical data, such excursions into the Fear zone usually precede price reversals, so maybe preparing the ground for a comeback should market attitude improves.
Complementing the larger market setting, Solana’s ecology keeps showing good foundations. With around $3.8 billion in 24-hour trading volume, the network recently reached a milestone in distributed exchange (DEX) activity, outperforming Ethereum and Base taken together.
Solana ETF in 2025?
The increasing prospect of a spot ETF approval helps to further bolster Solana’s optimistic scenario. As Polymarket shows, market mood suggests an 85% likelihood of SOL ETF acceptance in 2025. Regulatory obstacles still exist, nevertheless, especially with relation to the SEC’s security classification of SOL.
SOL/USD Technical Analysis
Renowned crypto analyst Ali Martinez has found a critical support zone in the parallel channel that might be quite important for Solana’s next significant action. The study indicates that if SOL can keep its position above the existing support level, the price might target the upper boundary of the channel at over $387 – so reflecting a possible 91% increase from current levels.
Measuring from the August 2024 low of $109, this aim corresponds with the 1.272 Fibonacci extension level. Previously shown was the importance of Fibonacci levels in Solana’s price behavior when the January peak aligned with the 1.0 Fibonacci level.
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