Analyst sees Solana hitting $192 but warns of a $140 drop if support fails, risking $161million in long positions.
By Bena Ilyas
Edited by Julia Sakovich
Updated
2 mins read
Solana (SOL) has been a bright spot in the cryptocurrency market this week, surging 20% over the past seven days. This price jump comes amidst a potentially bullish signal identified by technical analysts – a large pennant pattern forming on the charts.
The pennant pattern typically emerges after a strong downward move, with the price consolidating within a triangle-shaped formation. CryptoBusy, a trading resource, highlighted this pattern on Solana’s 1-day chart on July 18, stating:
“SOL HUGE PENNANT on the 1D chart.”
This pattern often precedes a price breakout, leading some traders to anticipate a potential rally for Solana.
Photo: CryptoBusy
While Solana has exhibited impressive strength, analysts remain cautious. InvestAnswers, a crypto trading account, acknowledges Solana’s outperformance compared to other major cryptocurrencies but emphasizes the need for careful analysis.
Photo: CoinMarketCap
Solana is the second-fastest growing cryptocurrency among the top ten by market capitalization over the past week. Solana’s growth sits at 20%, trailing only XRP’s impressive 17.22% surge.
At the time of writing, Solana is trading at $161.18, surpassing its “short-term target”, according to crypto trader Honey. However, Honey advises against excessive leverage due to the current uncertainty surrounding the asset’s price movement.
“This is a pivot area and I’d be cautious with longs if you’re entering here,” Honey wrote, urging her followers to avoid overleveraged positions.
Honey predicts a potential price increase for Solana, reaching $192. However, she also warns of a downside risk if the current support level is not maintained. A drop to $140 could eliminate approximately $161 million in long positions held by traders.
Crypto Tony, a pseudonymous crypto trader, thinks the $160 level might not be the best entry point. Crypto Tony suggests waiting for a slight price increase, saying, “Upticking nicely here, reclaiming $163 into support is the next goal.” He added, “Above $163 is another level to reclaim for an easy, safer entry.”
Solana’s recent price surge and the emergence of a bullish pennant pattern have created optimism among some traders. With Solana around a critical support level, the next days could be crucial in determining the asset’s price direction.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
