Coinspeaker
Solana Price Surges 20% in One Week, Bullish Pattern Hints Further Rally to $192
Solana (SOL) has been a bright spot in the cryptocurrency market this week, surging 20% over the past seven days. This price jump comes amidst a potentially bullish signal identified by technical analysts – a large pennant pattern forming on the charts.
The pennant pattern typically emerges after a strong downward move, with the price consolidating within a triangle-shaped formation. CryptoBusy, a trading resource, highlighted this pattern on Solana’s 1-day chart on July 18, stating:
“SOL HUGE PENNANT on the 1D chart.”
This pattern often precedes a price breakout, leading some traders to anticipate a potential rally for Solana.
Photo: CryptoBusy
Solana Outperforms Market but Caution Urged
While Solana has exhibited impressive strength, analysts remain cautious. InvestAnswers, a crypto trading account, acknowledges Solana’s outperformance compared to other major cryptocurrencies but emphasizes the need for careful analysis.
Photo: CoinMarketCap
Solana is the second-fastest growing cryptocurrency among the top ten by market capitalization over the past week. Solana’s growth sits at 20%, trailing only XRP’s impressive 17.22% surge.
At the time of writing, Solana is trading at $161.18, surpassing its “short-term target”, according to crypto trader Honey. However, Honey advises against excessive leverage due to the current uncertainty surrounding the asset’s price movement.
“This is a pivot area and I’d be cautious with longs if you’re entering here,” Honey wrote, urging her followers to avoid overleveraged positions.
Honey predicts a potential price increase for Solana, reaching $192. However, she also warns of a downside risk if the current support level is not maintained. A drop to $140 could eliminate approximately $161 million in long positions held by traders.
Bullish Pennant Pattern Eyes $160 Level Breakout
Crypto Tony, a pseudonymous crypto trader, thinks the $160 level might not be the best entry point. Crypto Tony suggests waiting for a slight price increase, saying, “Upticking nicely here, reclaiming $163 into support is the next goal.” He added, “Above $163 is another level to reclaim for an easy, safer entry.”
Solana’s recent price surge and the emergence of a bullish pennant pattern have created optimism among some traders. With Solana around a critical support level, the next days could be crucial in determining the asset’s price direction.
Solana Price Surges 20% in One Week, Bullish Pattern Hints Further Rally to $192
