Analyst predicts strong rally for Solana (SOL)

A favorable breakthrough for Solana is about to happen. At least that’s what Ali Martinez’s crystal ball tells him.

The cryptocurrency specialist has come to the conclusion that Solana (SOL) is set for significant gains. Based on his latest look at the 12-hour pattern on its chart, Martinez has discovered a “W” patternwhich is a well-known sign of a bullish reversal indicating that the price of SOL is likely to skyrocket in the near future.

Two clear bottoms separated by a peak around the same price level define the “W” pattern, a double bottom. Solana’s most recent move saw an initial bottom on June 23 around $119, peaking on June 30 at near $147. On July 5, the second bottom fell to around $123, confirming the trend before recovering.

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Investors’ forecasts and emotions

Buoyed by the strong technical foundation established by the “W” formation and supported by generally bullish indications, Martinez sees Solana reaching $174 in the near term. This level marks a notable return from the mid-June lows, highlighting SOL’s tenacity and future for further expansion.

Current estimates indicate that Solana will climb around 14%, perhaps reaching $185 by August 16, 2024. Standing at 69 (Greed), the Fear and Greed Index shows growing market confidence; SOL records 18 out of 30 green days (60%) with a price volatility of 4.66% over the past month.

Source: CoinCodex

Technical indices confirm upward trajectory

Solana, which is currently trading at $157, has shown tenacity in maintaining its uptrend with a 14% increase compared to the previous seven daysAs the altcoin oscillates between its upper and middle bands, indicating continued upward momentum, the Bollinger Bands (BB) indicator highlights SOL’s positive posture.

Solana’s market cap currently stands at $74.7 billion. Chart: TradingView

The first few hours of trading saw SOL momentarily dip into the mid-band, suggesting a minor halt before perhaps resuming its climb towards the $174 resistance level.

This positive view is supported by the Moving Average Convergence Divergence (MACD) indicator, which shows a significant crossover during which the MACD line has remained consistently above the signal line for an extended period.

The green bars on the MACD histogram are also intensifying simultaneously, indicating strong buying pressure and supporting SOL’s uptrend.

The Stochastic RSI indicator, meanwhile, has often shown overbought conditions (many spikes above 80), reflecting continued demand and investor optimism about SOL’s future.

With technical signs and market sentiment supporting further gains, Solana’s explosive rise towards the $174 target marks a turning point for the altcoin.

Featured image from Getty Images, chart from TradingView

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