Solana (SOL) is expected to rebound to $300, with a strong technical structure that includes a bullish flag pattern and a bullish MACD crossover. Meanwhile, funding rate data from exchange giant Binance suggests that there is greed in the market. With the momentum in the entire cryptocurrency market strengthening and trader sentiment positively shifting, will Solana's price break through $300 and set a new all-time high?
Solana's price starts to rise to $300.
Solana's recent decline and subsequent drop formed a bullish flag pattern, indicating that the upward trend will continue. This pattern began to form in April when Solana's price surged from a low of $95 to a multi-month high of $184. This rebound constitutes the flagpole of the pattern.
The flag pattern in the chart is characterized by a drop of 23% from the low of $141 on May 13 to last week. As of the time of writing, the SOL price is $160, and this altcoin is currently testing the breakout flag resistance.
If Solana can form three decisive candlesticks above this resistance and turn it into a support level, it could initiate a 97% rebound, pushing the price to the historical high of $300.
The MACD indicator supports this bullish pattern as it has issued a buy signal within the daily timeframe, aligning with the impending breakout resistance. Once the MACD line crosses above the signal line and turns positive, it could indicate a strong rebound in Solana's price.
CoinGape's recent analysis also pointed out that bullish signals are converging as Solana forms a bullish wedge pattern. According to the analysis, the first level that SOL might break through before the bull market rebound arrives is $200.
However, since the RSI has not yet entered the bullish zone, optimistic expectations should be cautious. The indicator is currently at 48, indicating that bears still dominate. If the closing price decisively breaks above 50, it will confirm that Solana's price may rebound to $300.
The funding rate reflects greed.
As Solana's technical analysis turns bullish, the ongoing rise in the cryptocurrency market has also stimulated investor greed for Solana, as reflected in the funding rate. Solana's funding rate has turned positive. Santiment's data shows that SOL's funding rate on the Binance platform is at its highest level in two weeks, indicating strong bullish sentiment in the market.
The funding rate indicates that as traders increase their bets on the rise, bullish buyers are paying fees to shorts to maintain their positions. If Solana breaks through the trendline resistance, the bullish outlook depicted by the funding rate will be realized, as it may show confidence in rising to $300.
However, if the current uptrend weakens and the funding rate remains high, it may have a bearish impact on the price. If traders decide to close these long positions, the resulting selling pressure could halt the upward trend.
In summary, as Solana's price is expected to break through the resistance of the bullish flag pattern, its price may soon rise to $300. With Binance's funding rate soaring to a two-week high, speculative traders also seem to anticipate this rebound.
