Key Insights on Solana's Price Dynamics and Best Entry Points for Traders
Understanding Solana's Current Downtrend
Solana (SOL) has been consolidating in a six-month downtrend range close to its all-time high (ATH) from 2021. As the cryptocurrency loses momentum from the impressive 2023 rally, trading experts weigh in on the "best entry" price target.
Trader Insights on Entry Price Target
Particularly, FieryTrading posted a long-term technical analysis on TradingView this Saturday, August 31, highlighting his entry price target. According to the trader, he is "waiting for the best entry" in a "bullish triangle" chart pattern dating from 2021.
- The triangle had its bottom at $1.0 per SOL on December 21, 2020.
- Historical ideal entry points include $8.15 in December 2022, $13 in June 2023, and $17 in September 2023.
FieryTrading believes Solana may visit the bullish triangle's support soon, projecting a price target of around $71 by January 2025. Nevertheless, his "best entry" point may happen sooner or later, adjusting the price target accordingly to the support's uptrend.
Potential Downward Breakout Implications
On the other hand, the triangle also presents lower highs, forming a downtrend from Solana's ATH. The token touched the pattern's resistance again in July at $191 after failing to break it for four subsequent weekly candlesticks from March to April.
Interestingly, SOL's current local top at $210 still represents a larger market capitalization than the $260 ATH.
- Data shows a $80.96 billion market cap at $260.
- At $210, the market cap is $93.13 billion.
This discrepancy is due to Solana's significant supply inflation, impacting the unitary price potential against similar demand.
Final Observations for Traders
The trading expert explains that after reaching a new local bottom within the triangle's support, SOL will likely bounce up to its resistance again—ideally breaking out for a bull run and price discovery, seeking a new all-time high.
However, Solana could surprise the market, potentially breaking downwards as it approaches the triangle's breaking point. SOL will need remarkably higher demand to beat its supply inflation and aim for new highs.
Traders and investors must closely watch the ecosystem's development and demand signals to evaluate their chances and make informed financial decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.