Solana (SOL) is building on bullish momentum across the broader cryptocurrency market after reclaiming the $150 resistance level.
Notably, technical indicators shared by crypto analyst Ali Martinez in an X post on August 23 suggested that SOL is poised to reclaim $200 while targeting a new record high.
According to Martinez, a potential “Adam and Eve” pattern on Solana’s four-hour chart suggests the cryptocurrency could experience a substantial rally in the near term. This pattern is a classic chart formation often associated with bullish reversals.
SOL price analysis chart. Source: TradingView
As observed by Martinez, Solana recently experienced a sharp decline to approximately $108, followed by a bounce back to around $156, creating the “Adam” part of the pattern. The cryptocurrency formed a rounded bottom, or the “Eve” portion, which is still in progress.
The analysis indicated Solana is approaching a critical resistance level near $164. If Solana successfully breaks through this resistance, the pattern suggests a potential upside target of $220, representing a 33% increase from the $164 resistance level.
Martinez’s analysis highlighted the potential for a significant rally if the pattern continues. However, it’s crucial for Solana first to clear the $164 resistance, as failure could invalidate the bullish setup.
SOL breaks out of the downtrend resistance line
At the same time, another analysis shared by TraderSZ indicated that Solana is also primed for significant upward momentum. The expert noted that the decentralized finance (DeFi) token recently broke through a critical downtrend resistance line on its daily chart. This breakout, coupled with increased buying volume, suggests the potential for strong upward movement in the near future.
The analyst highlighted a well-defined descending trendline that has been tested multiple times over the past few months. However, Solana’s recent price action saw it decisively push above this trendline, indicating a possible trend reversal.
SOL price analysis chart. Source: TradingView
In this context, critical interest levels include the immediate resistance at $196.30, followed by the psychological barrier at $299.90. Should the bullish momentum continue, the next major targets could be $374.50 and $518.30.
Conversely, the downside is supported by strong levels around $130.70 and $80.00, which could serve as potential pullback zones if the price fails to sustain its current trajectory.
Solana price analysis
At press time, Solana was trading at $155, having rallied over 7% in the last 24 hours. On the weekly chart, SOL has gained over 11%.
SOL seven-day price chart. Source: Finbold
Overall, with Solana trading in tandem with the bullish momentum across the broader market, investors will be watching the token’s ability to sustain the current rally and push its valuation past the $160 resistance, potentially setting a new record high.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
