Solana (SOL) is exhibiting strong bullish momentum, driven by a surge in network activity and a notable "megaphone" chart pattern. Analysts suggest that if current conditions persist, SOL could reach a price target of $210, marking a potential 21% increase from its current price of approximately $172.07.
Cointelegraph
š Technical Analysis: Megaphone Pattern Indicates Potential Breakout
The "megaphone" or broadening formation observed on Solana's 4-hour chart is characterized by increasing price volatility and expanding price swings. This pattern suggests market indecision but also presents the potential for sharp breakouts. The upper resistance trendline is near $185, aligning with immediate resistance at $180. A confirmed breakout above this level, supported by strong trading volume, could propel SOL toward the patternās first target at $210.
However, it's important to note that failure to break above $180 may lead to a pullback toward the 100-day exponential moving average (EMA) at $161 or the patternās lower support near $150. Volume confirmation on the breakout is a key trigger, as low volume could signal a false move, leading to an immediate reversal.
š On-Chain Metrics: Network Activity and Capital Inflows
Solana's on-chain metrics are reinforcing the bullish technical outlook:
Realized Cap Increase: Solana's realized capitalization, reflecting the total value of coins based on their last transaction, rose by $4 billion to reach $78.5 billion as of May 14.
Transaction Volume Surge: Over the past week, Solana processed over 731 million transactions, making it the second most active blockchain behind Hyperliquid and significantly ahead of peers like Base.
These indicators suggest renewed investor interest and growing momentum within the Solana ecosystem.
ā ļø Conclusion: Key Levels to Monitor
Solana's current price action, combined with robust network activity, positions it for a potential breakout:
Resistance Levels: Immediate resistance is observed at $180, with the upper trendline of the megaphone pattern near $185.
Support Levels: Key support levels include the 100-day EMA at $161 and the lower boundary of the megaphone pattern around $150.
A decisive move above $185, confirmed by substantial trading volume, could validate the bullish megaphone pattern and set the stage for a rally toward the $210 target. Conversely, failure to break above resistance may result in a retracement to support levels.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.