Market watchers have been praising the price action of Solana (SOL) throughout the month. The fifth-largest cryptocurrency by market cap has been performing strongly despite the market turmoil, recently reclaiming the $160 support level. Analysts suggest that SOL could repeat history and begin a bull run towards its all-time high soon.
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Solana exits consolidation range
In August, Solana’s strength was tested during market corrections. Many analysts have named Solana one of the strongest assets this month, pointing to its performance over the past three weeks.
SOL price dropped more than 30% during the first crash, falling to $110 before recovering. A week later, the token saw another pullback to the $140 support level, but maintained a sideways movement between the $140 and $155 range until Saturday.
Some market observers claimed that the token was in a “great place” to accumulate as it was “still in the same sideways range while the rest of the market is hitting lows.” Furthermore, they expected Solana to take off once the price of Bitcoin (BTC) surged.
Since then, Bitcoin has gained 10%, ranging between $63,000 and $64,000 over the weekend. SOL has also seen positive price action, rising 13.9% in the past three days.
SOL broke the $155 resistance level on Saturday after an 8% surge. The cryptocurrency continued its upward trajectory, reaching $162 before pulling back. Throughout the weekend, the coin continued to move within this new range.
Is SOL price approaching $600?
Solana’s recent performance has generated positive sentiment among investors and experts. Some analysts have suggested that maintaining current levels could lead to a new surge for Solana. Ali Martinez recently noted that the $164 resistance level was key to Solana’s rise.
According to the analyst, the token is forming an “Adam and Evan” pattern, which indicates a potential rally to $164. If the token manages to break this resistance, its price could see a 33% surge towards the $220 price range, a level not seen since late 2021.
Similarly, Altcoin Sherpa has identified the $165 resistance level as a level to watch. Sherpa sees SOL moving within an “interesting level” but suggests investors “be patient until it reaches the $165 level.”
According to the post, a break above this level could push the price towards the $188 and $201 resistance levels. Meanwhile, a failed attempt could send the price back to the previous range. However, Sherpa believes that the cryptocurrency will “strongly” break its all-time high price in Q4, regardless of the outcome.
Cryptocurrency analyst Jelly stated that SOL “looks more and more ready to scale, especially against ETH.” For Jelly, Solana’s chart looks ripe for price discovery as it resembles SOL’s performance three years ago.
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According to the analyst, The symbol “The price remains above the RSI average, while moving around the 25-week EMA” as has been the case in 2021. This performance was followed by a massive rally that pushed the price to SOL’s all-time high of $259.
Accordingly, my generation It is considered Solana is poised to surge to a new record high in the $450-$600 range this cycle. Solana is currently trading at $160, up 2% and 13.9% on the daily and weekly timeframes.
Featured image from Unsplash.com, chart from TradingView.com
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