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With a flag breakout briefly crossing the psychological $150 mark, can Solana top the $200 threshold in this bull run?
Despite Bitcoin’s price failing to sustain levels above $64K, the bull run in altcoins is gaining momentum. Solana has displayed a flag breakout on the 4-hour chart, extending its uptrend and hinting at a potential bull run.
However, the broader price action reveals a rounding bottom pattern that contains this trend. Will this short-term flag breakout breach the larger rounding bottom and push Solana past $200?
Solana Upshifts Bullish Gear
With a boost in momentum, Solana’s price briefly surpassed the $150 mark. The 4-hour chart indicates a bullish flag pattern breakout within a larger rounding bottom structure.
After bouncing from the 38.20% Fibonacci level at $145, the altcoin is now challenging the 50% Fibonacci level at $154. However, a subsequent higher price reaction has resulted in an evening star pattern, causing a 2.5% decline in the last eight hours.
Nevertheless, the reversal in Solana is a retest of the bullish breakout of the overhead trend. As the chances of a post-retest reversal from the broken overhead trend line are significant, it will mark a new bull cycle within the larger rounding bottom pattern.
Additionally, a surge in demand is reflected in the MACD indicator, which shows a positive crossover between the MACD and signal lines. The merging of the 100 and 200 EMA suggests a potential bullish crossover, while the rising 50 EMA on the 4-hour chart will provide dynamic support if corrections occur.
Will Solana Cross $200?
The neckline of the broader rounding bottom pattern is near the $160 mark, just below the 61.80% Fibonacci level at $163. Based on current price analysis and Fibonacci levels, a breakout from the rounding bottom is likely to surpass the 100% Fibonacci level at $192.
If this occurs, the next resistance level at the 1.618 Fibonacci level is projected at $239.35. This would require a growth of approximately 60% from the current price of $150.
On the downside, crucial support levels are identified at the 38.20% Fibonacci level of $145 and the 23.60% level at $133.98.