Solana on the Verge of a Major Breakthrough: Can It Surpass Its 2021 Rally?
Solana is currently displaying a price pattern that mirrors its breakout performance in 2021. Analyst Ali Martinez recently pointed out this similarity in a post, noting that Solana’s three-day price chart is following a trajectory reminiscent of its 2021 surge. Additionally, the Relative Strength Index (RSI) is at a level comparable to that time.
Could Solana Repeat Its 2021 Breakout?
Technical analysis charts provided by Martinez show that Solana is exhibiting a pattern similar to its breakout in 2021. The charts reveal a descending triangle pattern that led to a significant rally in 2021, and current indicators suggest a potential movement in the same direction.
The symmetrical triangle pattern displayed in the charts is a bullish continuation indicator, hinting that Solana may be gearing up for another breakout. The historical context further supports this technical setup, suggesting a potential bullish momentum ahead.
Adding to the positive sentiment, global asset management firm Franklin Templeton Investments has expressed optimism about Solana’s future in the cryptocurrency industry. The firm highlighted Solana’s role in shaping the industry’s future, further bolstering confidence in its potential.
With Solana gaining nearly 18% over the past week and showing strong market confidence, there is a possibility of further upward movement. The cryptocurrency’s price has climbed by 36% over the past 30 days, reinforcing market confidence in its growth potential.
As of July 25, SOL/USD was trading at $181.49, reflecting a 5.19% increase in the past 24 hours. The cryptocurrency’s robust 24-hour trading volume of $8.77 billion underscores significant market activity. Solana’s market capitalization now stands at $80.70 billion, solidifying its position as a key player in the crypto market.
The Fear & Greed Index, currently at 69, indicates a prevailing sense of greed among investors, which is often seen as a bullish indicator. SOL has experienced consistent upward momentum, with 21 good days out of the last 30, highlighting its potential for short-term gains.
Cryptocurrency analyst Jelle notes that Solana is closely following its ‘Summer 2021 Playbook’, predicting a continued upward trend with a final target of around $600.
The potential approval of Solana ETFs could serve as a bullish catalyst for its market performance. Exchange operator Cboe Global Markets has filed a request with the SEC to list exchange-traded funds tied to Solana, with a decision expected by March 5, 2025. President of ETF Store, Nate Geraci, predicts that an ETF combining Bitcoin, Ethereum, and Solana could launch soon, simplifying the investment process and boosting investor confidence in Solana. The anticipated ETF launch could drive SOL prices up.
