The price of Solana is targeting $4,500 following the establishment of a bullish pattern. Nevertheless, there are concerns regarding the likelihood of this rally occurring in the short term.
The Solana price increase encountered resistance at the $150 level earlier this week, yet analysts maintain a positive outlook for a potential significant upward movement.
This optimism is particularly pronounced, as one analyst forecasts that this competitor to Ethereum may soon reach $4,500.
However, despite this ambitious prediction, various indicators imply a different outcome.
The current value of $SOL is $148, reflecting a nearly 2% decrease over the past 24 hours due to market uncertainty.
Analyst Predicts Solana Price Will Reach $4,500
In his Solana price forecast, renowned analyst Ali Charts indicated that the altcoin could be poised to surge to $4,500.
His prediction is grounded in the emergence of a cup and handle pattern observed on SOL's weekly price chart.
In order for this chart pattern to be validated, Solana must surpass the resistance line on the handle and secure a weekly close above it.
Should a breakout take place, traders should prepare for a potential surge reaching up to $4,500.
Although Ali Charts did not specify a timeframe for achieving this target, various factors indicate that it is improbable to occur in the immediate future.
Reasons why Solana Price Rally to $4,500 is Unlikely
A significant factor contributing to the improbability of a Solana price surge to $4,500 in the near future is the decline of the meme coin excitement on the SOL blockchain, which has led to a drastic reduction in SOL DEX volumes from $20 billion last week to $6 billion at the time of reporting, according to data from deFiLlama.
The waning interest in Solana meme coins may initiate a bearish trend. Furthermore, the prospect of a Solana price increase to $4,500 is further diminished by the decrease in social engagement.
Data from Santiment indicates that SOL social volumes reached a peak of 2,579 earlier this month but have since fallen to 165.
The observed decline indicates a decrease in discussions surrounding Solana, underscoring a lack of retail interest.
Furthermore, historical trends reveal that diminished social activity has consistently aligned with a decline in Solana's price performance.
Moreover, data from Coinglass regarding funding rates suggests that futures traders do not foresee a short-term rally in Solana's price, particularly not reaching $4,500.
At the time of reporting, the funding rate had turned negative, reflecting a bearish sentiment as traders initiate short positions in anticipation of a price drop.
Solana Short-Term Forecast as SOL Enters Consolidation
Following a significant upward trend for the majority of this month, the price of Solana has entered a phase of consolidation, remaining within the range of $145 to $152 for almost a week.
A breakout to the upside will only materialize if buyers are inclined to acquire more tokens at these price levels.
The Relative Strength Index (RSI) has surpassed the 50 mark and is trending upwards, indicating that bullish momentum is starting to build.
Should the RSI continue its ascent, traders can expect the price of $SOL to gain further and potentially break above $152, targeting the resistance level of $179.
Conversely, if the upward trend of the RSI falters and it falls back below 50, this could trigger a bearish breakout from the current consolidation phase.
In conclusion, a surge in Solana's price to $4,500 appears unlikely in the short term due to the adverse funding rate, decreasing social engagement, and a significant drop in meme coin activity.
These elements have resulted in SOL trading within a consolidation range, as buyers continue to exhibit caution.
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