- Solana’s bullish pennant breakout on the weekly chart highlights a possible 279% rally with a target of $400.
- The retest of previous resistance as support suggests healthy bullish momentum in SOL price.
- Volume and momentum indicators should be monitored closely to confirm sustained buying interest in the market.
Crypto analysts find the Solana cryptocurrency interesting for the first time after it abandoned the bullish pennant pattern on the weekly chart. This is preceded by a technical breakout to higher ground, after which the asset pulls back to higher support levels, suggesting an upward trajectory.
Technical description of the leak
The weekly chart presents a solid image of a bullish pennant chart pattern, a standard chart pattern familiar to technical analysts that denotes the continuation of an upward movement. Solana’s recent actual price movement confirmed this pattern as it broke through the well-constructed resistance level; only to pull back and probe previous breakout levels. This behavior is normal and is usually taken as a supporting statement.
$SOL breaks out and retests the bullish pennant on the weekly chart!
Buy the dip and stay strong for a $400 target 📈#Crypto #SOL #Solana #SOLUSDT pic.twitter.com/yPm3QI4Yza
– Captain Faibik 🐺 (@CryptoFaibik) December 23, 2024
At the moment, SOL price has maintained support levels, reversing from key areas that were previously a resistance level. These new tests are important as they are always followed by a probable increase when accompanied by other bullish signals.
Projections based on historical patterns
A relatively large rise is generally expected before the breakout of a bullish pennant; The potential target could be determined by measuring the height of the pattern and then projecting it from the breakout level. Using this analytical framework for Solana, the price target could reach $400, which could be approximately 279% higher than the current value.
However, using the patterns obtained on the basis of technical indicators, you obtain some information, but not insurance. Whether or not this goal is achieved will depend on market sentiment, general economic conditions and the further development of the overall Solana ecosystem.
This cryptocurrency is very sensitive to changes in broader market factors or changes in regulatory policies that affect the cryptocurrency market. Whether this goal is achieved depends again on the combination of technical and fundamental indicators regarding the cryptocurrency. For now, the breakout and retest have placed SOL as one of the digital assets to watch next week.
