Solana Traders Identify Bullish Pennant Pattern as SOL Gains 17%
Crypto traders have identified a bullish pattern onthe Solana price chart, triggering anticipation for morerallies as Solana's price gained 17%in the past week.
According to CryptoBusy analysts, SOL has formed a huge Pennant on the one-day chart, hinting at a possible price increase ahead for the asset.
#Solana $SOL HUGE PENNANT on the 1D chart!
Watch out for this price action! https://t.co/GF2BfV0Dtv pic.twitter.com/Hlh73PKHq9
- CryptoBusy (@CryptoBusy) July 18, 2024
CryptoBusy analysts believe that the bullish Pennant signals positive price action ahead for SOL as it still shows impressive strength.
Solana Bullish Pennant Likely Signals Positive Price Moves AheadFor context, a Pennant is a chart pattern that forms when an asset's price settles in a triangle-shaped pattern after a strong downtrend. According to the analysts, Solana is trading inside the bullish Pennant and approaching the upper trendline, which suggests a breakout.
Based on this bullish pattern, CryptoBusy analysts advise their followers to watch out for Solana's price action.
The analysts also note that projects building AI, machine learning (ML), and GPUs are moving to Solana. This increased utility will likely lead to further price gains.
$SOL x AI combo is TOP-NOTCH!
Projects that are building AI, GPUs, & machine learning are building on top of @solana
$IO $RNDR $NOS $GRT $DITH $SNS
Probably nothing. #DYOR https://t.co/yx58yNJ95J pic.twitter.com/hy6nnsCctu
- CryptoBusy (@CryptoBusy) July 16, 2024
Crypto trader Honey also shares a bullish outlook, noting that Solana has reached its short-term price target of $160. According to Honey, this is a pivotal area where traders must be cautious when making long trades.
short term target reached at $160
this is a pivot area and i'd be cautious with longs if you're entering here
reclaim = $192 next
reject = $140s next
go easy on the leverage
pic.twitter.com/HioxXAqqct
- Honey (@honey_xbt) July 17, 2024
Honey also believes SOL will reclaim $192 as its next price target, with a possible drop to $140 before Solana rallies again.
If SOL retraces to $140, it could wipe out approximately $161 million in long positions. Hence, Honey advised her followers to take it easy when leveraging positions to prevent severe losses.
Trader Crypto Tony believes Solana is the next target to break above the $163 price level and turn it into support. Solana's price resurgence might be due to improved market sentiment following Bitcoin's positive price action in the past few days.
Above $163 is another level to reclaim for an easy, safer entry pic.twitter.com/auzLxoMelB
- Crypto Tony (@CryptoTony__) July 18, 2024
Analytical platform Coinglass reveals that Futures traders are increasing their positions based on the bullish pattern. In the past ten days, unsettled Bitcoin futures contracts on exchanges have increased by 22.14% or $2.13 billion.
This implies that traders anticipate a price surge ahead for Bitcoin and other cryptocurrencies like Solana.
How is Solana Faring Today?SOL has formed two consecutive green candles on the daily charts, with higher highs confirming increased buyer pressure.
Solana found support at the $155 price level and is testing the $162 resistance level. It is currently trading close to the upper band of the Donchian Channel (DC), a strong bullish signal for further price increases.
Additionally, the RSI is 60.41, approaching the overboard area, suggesting more room for further rallies. If the RSI enters the overbought region above 70, SOL will break above $162 and reclaim the $170 price level in the coming days.
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