Source: Cointelegraph
Original: (The surge in Solana's network activity and the 'pennant' chart pattern indicate a price target of $210 for SOL)
Key Points:
The price of Solana (SOL) tested its key resistance level of $180 earlier this week, but the altcoin failed to establish a position above this level. Over the past few days, the SOL price has consolidated above $170, but it has dropped 5.65% since May 14.
Including the recent slight pullback, Solana has formed a pennant pattern on the 4-hour chart, a classic technical pattern indicating increasing volatility.
The chart shows that the upper resistance trend line of the pennant is around $185, aligning with the immediate resistance at $180. If a breakout at this level is confirmed, SOL may advance towards the first target of the pattern at $210, derived by measuring the widest part of the pattern and projecting upward from the breakout point.
If the momentum continues, the next target will be $210, representing a 21% increase from the current price. Breaking through $200 will also trigger a psychological barrier, potentially attracting further buying pressure.
However, it is worth noting that the pennant pattern can also be bearish. Failing to break through $180 could lead to a price pullback to the 100-day Exponential Moving Average (EMA) at $161 or near the lower support level of the pattern at $150. Confirmation of volume at the breakout is a key triggering factor, as low volume may indicate a false breakout, leading to an immediate reversal of the initial directional bias.
Solana is experiencing a resurgence of investor interest, with Glassnode reporting a 4% to 5% increase in 30-day capital inflows, comparable to the growth of XRP. This trend reversal after months of outflows indicates new demand for the Solana ecosystem. The realized capital reflects the value of the last trade of the token, which increased by $4 billion to $78.5 billion on May 14, showing the growth momentum of SOL.
Data from the Top 7 ICO report further validates Solana's strong performance, ensuring its position as the second-ranked blockchain by transaction volume. Over the past week, Solana processed an impressive 731 million transactions, second only to Hyperliquid's 1.79 billion. In contrast, Base recorded 77.1 million transactions, highlighting Solana's existing advantages and popularity compared to other chains.
Related: The 'Fart' Storm on the Solana Chain: Fartcoin Ignites a New Peak in the Meme Coin Market
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research before making decisions.
