Solana Price Prediction: This Bullish Technical Formation Could Steer SOL 84% North

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Solana (SOL) price bounced from the $8.00 support floor in late December, soaring 69.51% to the $26.39 level. Both bulls and bears take credit for this price action that led to the formation of an ascending parallel channel.

However, the price appears capped at $26.39, possibly because of profit taking. Even so, buying pressure continues to sustain the price above the ascending trendline of the technical formation. Bulls are now targeting the $44.35 level, a 69.51% climb similar to the ascent made before the price was capped.

The move, representing an 84.95% increase from the current level, hinges on whether the price will move above the ascending trendline of the chart pattern. At the time of writing, SOL was trading at $23.87, down 2.75% on the last day. Because of the price drop, Solana’s market cap was also down 2.24% to $8.99 million. The token’s trading volume was down 22.35% in the last 24 hours.

Solana X Encode Hackathon Finale

The latest development on the Solana network is the finale of the Encode x Solana Hackathon. Teams have built for the past four weeks, and the top 10 will pitch their builds in front of the audience. The finale will feature a prize-giving ceremony on Friday, February 24, at 5:30 P.M GMT. Announcements for the prizewinners and overall winners will take place once the pitching session ends.

? @encodeclub Hackathon Sponsored by the @SolanaFndn FINALE is tomorrow! Yet to register for the live event?

Guided by our PM @angela_sun__, teams have been building for the past 4 weeks and the top 10 get to pitch their builds in front of an audience!https://t.co/hrq8vZgbTV

— Encode Club (@encodeclub) February 23, 2023

The Solana Foundation sponsors the competition. The best Hackathon project owners will present before an audience of hackers, investors, and Solana representatives.

Besides this event, no significant developments have taken place in the Solana ecosystem that could significantly affect the price. Nevertheless, SOL bulls remain hopeful as the price action enjoyed the support of several indicators. This will be discussed in the analysis section. For now, let us investigate why Solana’s recent price dive was a good thing.

Solana Price Plunge Was Good For Bulls To Load Up On SOL Tokens

After SOL failed to break past the $26.39 level on Monday and Tuesday, the price corrected lower. This is a good strategy in the long term, as bulls will be interested in collecting the token at a discount. Investors should expect the price to plunge more toward the critical support offered by the ascending trendline before the next rally phase commences.

Solana is currently sweeping out the price action from short-term bulls whaling the altcoin for short-term gains. Evidence of this comes as the same cohort of bulls quickly exited their positions at $26.39 earlier in the week. Accordingly, this correction is expected to return the SOL price to more average levels. Such a move would entice investors into buying the token’s price action at more affordable rates.

Solana Price Analysis

With SOL currently trading at $23.87, the price was moving downwards as investors waited to join the price action at the most opportune time. The bulls were planning an 84.95% ascent to the $44.35 level, which would only be attainable if the price maintained above the ascending trendline.

To reach their target, bulls would have to break past the immediate resistance at $24.70 offered by the 200-day Simple Moving Average (SMA). Beyond that, they would also need to break past the resistance at $26.39, which rejected the price on Monday and Tuesday.

A breakout was possible, given that investors were currently collecting SOL. If buying pressure increases past these two levels mentioned above, the price could skyrocket to the $44.35 level. Such a move would signify an 84.95% increase from the current level.

SOL/USD Daily Chart

Solana (SOL) Price — *TradingView Chart: SOL/USD*

The positive thesis for Solana was supported by several indicators, starting with the upward-moving 50-day SMA at $22.22. This showed more buyers were coming into the market. If the token price continued to move above the trendline, the 50-day SMA and the 200-day SMA could soon call a buy signal when they crossed past each other.

Also bolstering the positive thesis was that the price was sitting on solid support downward. The ascending trendline, the 50-day and 100-day SMA at $17.48, were all potential bases for bulls to regroup and refresh their buying power.

The moving average convergence divergence (MACD) was moving in the positive region above the zero line. This, coupled with the histograms flashing green, showed the presence of some buyers in the market. The relative strength index (RSI) at 53 showed that there was still more room upward.

On the downside, if selling pressure intensifies, the price could plunge lower below the ascending trendline. In extreme cases, it could lose the support offered by the SMAs and move to retest the $8.0 swing low.

Notice the RSI was moving downward and was about to send a sell signal, which would be authenticated once the RSI crossed below the stochastic RSI (line in yellow). This, combined with the fading histograms, showed bulls were fleeing the scene in favor of bears.

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