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As Solana V-shaped reversal gains momentum amid rising demand, breakout opportunities target the $271 level, which could be the next all-time high.
With bullish sentiments in the crypto market, Solana is witnessing a surge in buying pressure. Over the past 24 hours, the cryptocurrency has surged by 5.26%, bringing its market cap to $110 billion.
Having surpassed the $230 barrier, the broader market anticipates Solana’s price could soon break past the $250 milestone. Will bulls drive the price to a new all-time high in 2024?
Solana Price Analysis
On the 4-hour chart, Solana’s price action forms a falling channel pattern. The bullish recovery from the critical support trendline near the psychological $200 mark signals a V-shaped reversal within this channel. This rally is a strong indicator of renewed market momentum.
The reversal rally is currently testing the 23.6% Fibonacci level at $231.41. Resistance levels also show confluence with the simple moving average lines and the overhead resistance trendline.
A close above this level would signify a major recovery, reinforcing bullish expectations and boosting the chances of a breakout rally. However, the prolonged decline within the falling channel pattern has raised concerns about a potential “death cross” event, where the 50-period simple moving average crosses below the 200-period simple moving average on the 4-hour chart.
Despite this, the V-shaped reversal has pushed the 4-hour RSI above the halfway mark, and the 14-day SMA has risen. As a result, the momentum indicator maintains a positive alignment, even with the bearish signals from the simple moving averages.
Solana Price Targets
With breakout opportunities on the horizon, the Fibonacci levels suggest an immediate rally target of $246.73. However, the falling channel breakout projects a possible move toward the 50% Fibonacci level, around $259.
Improving market sentiment increases the likelihood of Solana reaching new all-time highs. The Fibonacci levels suggest that $271 and $289 are potential targets for the next all-time highs.
Meanwhile, a bearish reversal could see Solana retesting the $220 support level, followed by the $200 psychological mark.