Solana Price Prediction: SOL primed for a breakout as it completes a rounding bottom pattern


  • Solana price has completed a rounding bottom pattern, hinting at a shift from a bearish to bullish trend.
  • SOL could record a new all-time high if it breaks above the technical formation; $ 224.14 is the level to watch.
  • A candlestick close below $80.00 would invalidate the bullish thesis.

Solana (SOL) price has conformed to the broader market crash, following in the steps of Bitcoin (BTC) price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store as it flirts with a bullish reversal pattern.

Also Read: Solana price primed for recovery if bulls hold $130

Solana price flirts with a rounding bottom pattern

Solana price suffered a prolonged fall beginning November 2021 through January 2023, falling by over 98%. This was followed by a brief horizontal consolidation before the bulls took over, with the price action culminating in a rounding bottom pattern.

A rounding bottom pattern is a bullish reversal pattern that happens after a prolonged downtrend. The price action forms a “U” shape, indicating a change in long-term price movement or sentiment from bearish to bullish, where the price decline loses momentum, followed by a gradual recovery before a breakout to the upside.

If the $130.45 support holds, Solana price could bounce north into the supply zone that stretches from $197.70 to $250.21. A break and close above its midline on the weekly timeframe at $224.14 would confirm the continuation of the primary trend.

In a highly bullish case, Solana price could flip the supply zone into a support or bullish breaker, confirmed by reclamation of the all-time high at $259.90, before establishing a higher high.

The position of the Relative Strength Index (RSI) above 50 suggests an abounding bullish outlook for the Solana price, tilting the odds further in favor of the upside. The likely play is a bounce off this momentum indicator above the 50 mean level, kickstarting a new uptrend for SOL.

SOL/USDT 1-week chart

Reinforcing the bullish thesis is the volume metric on Santiment, which is steadily rising to show increased interest and activity in SOL. It also points to greater liquidity, more market participation, and potentially stronger price movements.

SOL price, volume

There has also been a significant rise or spike in the number of Solana discussions over the last week, with optimism about the token jumping strongly amid the growth of quotations. 

SOL Social volume, Social dominance

In a post on April 9, Santiment analysts observed a rise in discussions regarding Bitcoin, Ethereum, and Solana, with BTC facing an upcoming halving event in around four days, bringing the prices of Ethereum and Solana into the spotlight.

On the other hand, if the bears have their way, Solana price could lose the support at $130.45, extending the fall to the $80.00 level. A candlestick close below this level would invalidate the bullish thesis. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin bull market is still going strong, on-chain data shows

Bitcoin bull market is still going strong, on-chain data shows

Bitcoin’s (BTC) price outlook remains positive in the short term despite its recent stabilization, on-chain data suggests, propelled by easing selling pressure by long-term holders and activity from large-wallet investors. 

More Bitcoin News

Dusk price sets the stage for a 20% rally

Dusk price sets the stage for a 20% rally

Dusk price is currently being rejected at around $0.426 level. The on-chain metric suggests DUSK growing network and dormant wallets are moving upwards again. A daily candlestick closing below $0.286 would invalidate the bullish thesis.

More Cryptocurrencies News

Digital asset inflows reach record high year-to-date

Digital asset inflows reach record high year-to-date

CoinShares' weekly digital asset flows, released on Tuesday, reveal that digital assets recorded a three-week consecutive rise in inflows, amounting to a record high of $14.9 billion already this year.

More Cryptocurrencies News

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin declined briefly from the $70,000 mark on Tuesday as Semler Scientific and Mt Gox made notable whale moves. Glassnode also shared key on-chain insights that breathe clarity into the market's current state.

More Bitcoin News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP