Solana (SOL) could be gearing up for significant price gains shortly, according to a recent analysis by cryptocurrency trader Ali. In a tweet recently, Ali pointed out that SOL has formed a bull flag pattern on the 4-hour price chart, which is often an indicator that an asset’s price is consolidating before continuing a broader uptrend.
#Solana is breaking out from a bull flag that developed on the 4-hour chart. A sustained close above $106 can trigger a 47% rally that pushes $SOL toward the $150 – $165 price range. pic.twitter.com/VmbA9L4QuL
— Ali (@ali_charts) January 11, 2024
Ali believes that if SOL can sustain a close above the $106 level, it could trigger a rally of up to 47%, propelling the price towards the $150 to $165 range.
This would represent a notable recovery for the asset, which has struggled in recent weeks along with the overall cryptocurrency market.
Solana is up over 500% year-to-date
While SOL remains up an impressive 505.6% year-to-date as per CoinGecko data, it has dropped 8.7% and 9.5% over the past 24 hours and 7 days, respectively.
However, Ali cautions that his bullish outlook depends on Bitcoin and the crypto market as a whole stabilizing. If selling pressure continues across digital assets, it could halt SOL’s rally despite the bull flag formation on the price chart.
With SOL having bounced between a 24-hour range of $97.61 and $106.95 as of this writing, it remains to be seen whether the bull or bear case will play out in the sessions ahead.
Cryptocurrency analysts will be closely eyeing SOL’s price action around the $106 level highlighted by Ali. A convincing move above this resistance could signal that a more sustained recovery rally is unfolding.
On the other hand, a rejection at this level could mean the continuation of the recent sideways trading. Traders may look to set buy limit orders around the key $106 point to try to take advantage of a potential upside breakout as described in Ali’s analysis.