Solana successfully broke above a bullish pattern and retested its support, which could push the token to $250 in the long run.
- Solana bears stepped up in the last 24 hours as its daily chart turned red. If a bull rally happens, then SOL might first target $188.
After a week-long price increase, Solana [SOL] has recently witnessed a minor price correction. But the scenario might change soon as the token has successfully retested a bull pattern.
This episode meant that the token might soon initiate yet another bull run, which could push the token to new highs.
Solana’s bullish move
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According to CoinMarketCap, SOL’s price increased by over 6% in the last seven days. However, the last 24 hours were somewhat of a setback as the token’s value plunged by 0.83%.
The recent price decline had a negative impact on its weighted sentiment on the 27th of July, which suggested that bearish sentiment around the token increased.
Source: Santiment
However, this might not actually be the beginning of a bear rally, as SOL recently broke above a bull pattern.
World Of Charts, a popular crypto analyst, recently posted a tweet highlighting the fact that SOL broke above the bullish pennant pattern and also retested its support.
To clear the air, a bullish pennant pattern appeared in March, and since then Solana’s price has been consolidating inside the pattern, only to break out a few days ago.
The tweet also mentioned that the recent retest of the support could begin a bull rally that could push Solana to $250, a new all-time high.
Source: X
Is SOL to $250 likely?
Since the target of reaching $250 seemed a bit ambitious in the short term, AMBCrypto planned to delve deeper into SOL’s state to see what to expect from it.
As per our analysis of Coinglass’ data, SOL’s long/short ratio registered an increase after a dip. A decline in the metrics means that there were more long positions in the market than short positions, which is considered a bullish signal.
Source: Coinglass
We then checked the token’s daily chart to find whether it could actually begin a bull rally in the near term. As per our analysis, SOL’s Chaikin Money Flow (CMF) registered a downtick, as did its Relative Strength Index (RSI).
Both of these technical indicators hinted at a continued price decline. Moreover, the MACD also displayed the possibility of a bearish crossover.
Source: TradingView
Realistic or not, here’s SOL’s market cap in BTC’s terms
In case of a bullish takeover of the market, then Solana might touch $188 once again before it sets its eyes on the $250 mark.
However, if the bears continue to dominate, as suggested by the market indicators, investors might witness SOL dropping to $176.
Source: Hyblock Capital
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