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Solana Price Prediction: SOL patterns spell $250 by end of October

  • Repetition of patterns is critical for the further uptrend in Solana.
  • Price action excellently withstood the sharp correction in cryptocurrencies.
  • The next step for Solana is to regain R2 monthly resistance and go for R3 monthly resistance within a few weeks.

Solana (SOL) has had a very choppy ride with price variations of 86% at one point in the market turmoil that made cryptocurrencies roll over at the beginning of the week. Price action in Solana has withstood this hurricane quite well and was at no point really at risk, as a repetitive pattern still shows its importance, even on a correction. 

The pattern is relatively easy to spot and has been going on since August 28. On the chart, it can be recognized by the purple short-term trend lines. Each time a purple line forms the backbone for the next leg upwards. Price comes back down after a significant break higher and includes a new purple short-term trend line again, which is the prelude for another portion higher. This pattern has already repeated itself four times and is still ongoing for the fifth time.

Fibonacci retracement confirms Solana patterns play

On days with a lot of variation in price action, the previous short-term trend lines were used as support in case the previous pattern broke. This was the case on September 7 and September 8.

SOL/USD daily chart

SOL/USD daily chart

Although the trend line originating from September 3 is a descending one, it still has its importance as it got two tests on the downside and one from the upside. With resistance turning into support, this level around $150 should withstand a future correction.

For the moment, Solana is testing the price action around $185. With the ascending purple trend line below and the R2 monthly resistance at $190, price action is getting a bit choppy, with buyers cashing in on their profit.

Another reason for the importance of these patterns, and the reason why they will hold support, is that they fall in line quite nicely with a Fibonacci retracement. Not only is there the pattern repetition, but Fibonacci levels are an additional reason for support and buyers to keep adding volume to the rally.

Expect a jump further for a retest of $221.37. From there, it is a clear target toward $250, with just below there the R3 monthly resistance coming in at $248.12.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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