According to Cointelegraph, Solana's (SOL) SuperTrend indicator has issued a 'buy' signal on its weekly chart, a development that has historically led to significant price rallies. This indicator, which tracks SOL's price trend similarly to moving averages, incorporates the average true range to help traders identify market trends. Historically, such signals have preceded substantial gains, with previous instances during the 2021 bull market resulting in rallies of 620% to 3,200%. The most recent signal in July 2023 led to a 1,339% increase, pushing prices to all-time highs above $295 from just over $20.
The SuperTrend indicator recently flipped from red to green as SOL crossed the $220 mark, suggesting a potential upward rally. Analyst Dorkchicken noted that if SOL closes a weekly candle above $220.45, the SuperTrend will turn green, indicating a buy signal. This pattern was last observed in 2023, when the price surged from $39 to $294. If history repeats, SOL could experience a significant rally, potentially reaching as high as $1,000, driven by increased demand from Solana treasury companies and the possible approval of spot Solana ETFs in the United States.
Currently, Solana's price rally has stalled at $250, encountering resistance as profit-taking and buyer exhaustion set in. Analyst Crypto Seth highlighted that SOL is nearing its first resistance zone, with the price recently correcting by 7% from eight-month highs of $250 to around $237. This correction has formed a descending parallel channel on the four-hour chart, with a crucial support area between $230 and $227, marking the lower boundary of the channel and the 50 SMA.
Despite the recent pullback, many analysts remain optimistic about Solana's potential to continue its rally towards $300 and beyond. Analyst Cipher X pointed out that SOL is demonstrating strong momentum, with the 9-weekly EMA crossing above the 15-weekly EMA, confirming the uptrend. The next liquidity target is near $300, where buyers could push for a breakout. As reported by Cointelegraph, surpassing the $250-$260 resistance could lead to the next significant resistance at $295, supported by increasing futures open interest and total value locked. Readers are reminded that this article does not provide investment advice, and all trading moves involve risk. Conducting thorough research before making investment decisions is advised.
