Solana: Analysts expect ATH rise in Q3 as SOL re-tests the discount level:
After reclaiming critical levels, Solana (SOL) is moving sideways within a major price range, with the next direction not yet determined. However, some analysts suggest that a breakout could start a new upward journey in the coming months.
Solana's movements within the main range
With a recovery of 15% every two weeks, Solana, one of the leading altcoins in this cycle, has attempted to reclaim critical resistance after regaining support at $140 for the first time since late February.
Earlier this month, the cryptocurrency dropped to a 14-month low of $95 amid market pullbacks, as Bitcoin (BTC) and Ethereum (ETH) re-tested key horizontal levels.
Since reaching its all-time high of $293 (ATH), SOL has declined by up to 63%, trading 50% lower than its peak in January at the time of writing. However, Solana has risen above some critical ranges during the recent recovery in the cryptocurrency market.
In the past few weeks, the altcoin has managed to reclaim support areas at $120 and $130, and broke the resistance level at $140 seven days ago, where the price of SOL has been rejected since losing the level nearly two months ago.
Market watchers noted that Solana has been moving sideways, consolidating within the range of $145-$157 over the past week. The trader observed that this range could determine the next direction for SOL, with a breakout above the upper limit putting the altcoin in line for a re-test of higher levels.
Conversely, if this price range collapses, "the next support level below is around $136," which may also risk a drop to support areas of $100-$120. However, Ali Martinez recently stated that Solana is forming the "perfect cup and handle pattern in the book," which could signal the beginning of a significant rise for SOL.
Is the price of SOL preparing to explode?
Analyst Alex from AMCrypto indicated that the short-term downtrend for Solana has ended after a recent breakout. He noted that SOL has broken out of a descending wedge formed over seven days within its current range, rising above the upper line of the trend on Monday.
According to the analyst, "SOL could reach $170-180 in the short term and is likely to set a new ATH by Q3/Q4," based on its utility and demand. "It has recently surpassed all L1s and L2s combined in DEX volume, demonstrating its immense utility. In addition, many companies are also raising funds to buy SOL, which will add more demand," he explained.
With the price attempting to stabilize at the $150 mark, trader Lluciano_BTC considers the current level to be a "strong consolidation". He pointed out that Solana's upward trend "has just begun" after breaking a descending wedge formation for several months at the beginning of the month.
According to the chart, SOL exceeded the formation before the correction that was below $100, and tested a key demand area during the subsequent pullback. After reclaiming the $120 mark, this altcoin is in an upward trend, focusing on resistance at $170 as the next target.
At the time of writing, Solana is trading at $149, up 1.1% in the daily time frame.