Solana Rebound: SOL To Hit $260 Despite Continuous Dip, Analyst Says
August 03 2024 - 7:30AM
NEWSBTC
Solana (SOL) has been on a rollercoaster ride of late, with its its
value seeing erratic shifts and even retreating in many instances.
Related Reading: ARB Market Plummets 14%, But New Developments
Could Reverse The Trend For Solana, the sharp swings in the market
have presented a difficult picture; nevertheless, experts still
have optimism. They see this as a passing phase even with the
downward pressures. The altcoin’s technical developments point to
an interesting future. At the time of writing, SOL was trading at
$150, down 6.2% and 17.1% in the daily and weekly frames, data from
Coingecko shows. Even within the turmoil, the recent trading volume
of $9.80 billion over the past 24 hours demonstrates a notable
degree of activity and investor interest. Technical Indicators And
Bullish Patterns Ali Martinez, a famous crypto analyst, recently
talked about Solana’s possible return, which makes dealers and
buyers very interested. Martinez’s study indicates on Solana’s
4-hour chart a bullish megaphone pattern developing. This trend,
which shows growing volatility, usually comes before significant
price increases. I know, the dip keeps dipping! However, #Solana
might be forming a bullish megaphone on the 4-hour chart. The
recent correction to the 61.8% Fibonacci level and oversold RSI
suggest it could be a good time to buy $SOL. Consider placing your
stop-loss around $156-$154 and… pic.twitter.com/ylnaPAf2EV — Ali
(@ali_charts) August 1, 2024 One of the main signs that could
validate Solana’s positive outlook is the digital asset’s
adaptation to the 61.8% Fibonacci retracing level. Highly important
in technical analysis, the Fibonacci retrace aids in the estimation
of probable support and resistance levels. Especially the said
level is viewed as a tipping point when normal market fluctuations
are expected. To reduce risk, Martinez recommends establishing a
stop-loss order between $156 and $154, therefore guaranteeing that,
should the price fall to this predefined level, holdings are
instantly liquidated. This approach seeks to minimize possible
losses and set investors to profit from the anticipated increasing
trend. Conversely, Martinez’s take-profit objective is from $200 to
$259, therefore providing a significant profit margin for those
ready to negotiate the present dynamics of the market with measured
risks. Long-Term Prospects And Strategic Positioning Although the
market for cryptocurrencies is inherently volatile, Solana’s
long-term prospects are very bright. SOL is selling at a 14.59%
discount to its expected estimate for the next month based on data
from the crypto prediction tool CoinCheckup. This underperformance
points to possible undervaluation, thereby offering investors ready
for a comeback a window of opportunity. From what CoinCheckup can
tell, prices will go up by 2.91 percent over the next three months.
This is the start of a healing time. Even though this projected
rise is small, it sets the stage for bigger ones. Related Reading:
Render Continues To Flash Red In All Timeframes – What’s Going On?
Things are looking up for Solana: prediction data show it is poised
to rally 80% over the next six months. This projection is probably
based on the notion that the network will improve, more people will
use it, and the market will be growing. Featured image from
Chainalysis, chart from TradingView
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