With the Wednesday negative Bitcoin ETF news dump seemingly now behind us, Solana, one of the key movers in the layer 1 altcoin space, looks ready for another big price move.
$SOL builds price structure
When $SOL came out of the blocks quickly in mid-October last year, the price action was fast, and became furious coming into mid-December, with a local top of $126 being reached only a week later.
Since that time the price has gone down and sideways, building price structure ready for the next move to be built upon – always a much healthier route to follow than towering price runs to the heavens, which will need to have far more serious corrections to follow them.
Bull flag?
Source: Trading View
Looking at the more short term 4-hour time frame, $SOL appears to be moving within a flag, although only two touches of the top trend line is one short of the three touches normally needed to confirm the flag pattern.
That said, if and when the price reaches the top of the flag again, this could be counted as the third touch. On the other hand, there are a lot of touches along the bottom of the flag meaning that price is certainly respecting this trend line.
If the pattern does turn out to be a bull flag, a breakout could lead $SOL, by way of a measured move of the flag, to a price of $154.
Positive longer term price action
Source: Trading View
Zooming out in the much higher time frame of the weekly, $SOL looks to be consolidating around the 0.382 fibonacci level. It might be expected that the 0.618 level could be the next target at $163. Although this should be a strong resistance, and in order to build a healthy price structure, a retrace back to at least $137 could be likely.
Crypto on the move
At time of going to press the crypto market is making another move to the upside. $BTC is once more above $44,000, and some of the altcoins are seeing some strong upward momentum, with $INJ up 18% and $TIA up 33% on the day so far.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
