Is Solana (SOL) ready for another breakout event in 2025 and a rally towards all-time highs?
Bitcoin has rebounded significantly over the past 24 hours, adding momentum to the altcoin segment. Solana’s market price has increased by 2.17% in the past 24 hours as the altcoin situation improves.
Despite negative returns over the past 7 and 13 days, Solana maintains a market cap of $94 billion. Solana has underperformed BNB coin and occupies the 6th place among cryptocurrencies, but it is approaching the psychological $200 milestone, hinting at the possibility of another breakout rally.
SOL price analysis
On the 4-hour chart, Solana price trend is showing a bearish influence. However, the underlying support is showing some technical signals indicating a possible reversal to the upside.
For example, it shows a downward expanding wedge pattern, which is generally considered bullish and increases the likelihood of a breakout.
The price trend within the pattern suggests a bullish reversal from the support trend line. Furthermore, the reversal forms an Adam and Eve pattern with a neckline around the $198 level.
A breakout of the neckline just below the psychological $200 mark could trigger an explosive parabolic rally. Additionally, the recovery is above the 50-EMA line and the 23.6% Fibonacci level at $196.36.
During the recovery period, the 4-hour RSI remains above the 50% level, indicating increasing buying pressure. Additionally, continued support above the 50-EMA line on the 4-hour chart increases the likelihood that the uptrend will continue.
As a result, technical indicators are increasingly pointing to a buying opportunity for Solana in the short term.
Solana's target price
The technical pattern and recovery rally suggest that Solana could move higher and test the overhead resistance near $215. Optimistically, a bullish breakout from the widening wedge pattern could propel the uptrend to $263 by January 2025.
Looking further ahead, the Fibonacci level suggests a new all-time high (ATH) target of $286.85 as the market recovers more broadly in Q1 2025. On the other hand, if the bullish rally fails to regain the $200 mark, Solana could retest the 20-EMA line at $192.58.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
