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While the Solana ($SOL) bull run briefly stalled after hitting a peak, analysts believe a new all-time high is in the works, with some entering long positions ahead of the expected rally.
Six days ago, Solana shattered its 2021 all-time high and established a new peak, coinciding with Bitcoin’s ongoing price discovery phase. However, unlike Bitcoin, Solana’s rally quickly faded after surpassing its previous $ATH without venturing far into new price territory, as the token retraced soon after.
Specifically, Solana hit an $ATH of $260 last Saturday, while its 2021 peak was $260. Interestingly, $SOL’s price has since dropped to $222 after this new top. However, analysts remain optimistic, believing Solana is poised for a new price top.
Solana Ready for New $ATH
Today’s $SOL crypto news: In an analysis shared on TradingView, market watcher NuriGG suggested that Solana is primed for a new all-time high. Convinced by his technical analysis, NuriGG revealed that he opened a long position in $SOL, positioning for the $ATH rally.
Notably, he entered the long position on $SOL around the $230 level, targeting a price of $294.25. The setup represents a calculated risk with a risk/reward ratio of 5.08, meaning the trader targets a 5X return on the amount he is risking.
The Technical Breakdown
Analyzing the 4-hour chart, NuriGG identified a clear ascending channel pattern, indicating bullish momentum for Solana. With an entry price of $230, the analyst has set a stop-loss at $216.15 to mitigate downside risks. At the same time, he is targeting a potential profit of 28.49% at $294.25.
At the target level, the trade could yield a profit of approximately $2,269.46, based on a position of 19.455 $SOL tokens. Conversely, at the stop-loss level, the trader looks at potential losses of $750. Notably, this trader committed around $6,535 to the trade.
Considering that Solana has already surged to $240 since NuriGG opened the position, the trade is currently profitable. It has an unrealized gain of around $252 as the market price has moved favorably since the entry.
Other analysts on TradingView are also targeting around $300 as Solana’s next all-time high. This is expected within the next few days as anticipation of Bitcoin reaching $100K regains momentum. At press time, Bitcoin is hovering above $96,000.