As 2024 concludes, Solana (SOL) captures investor attention with a possible breakout toward the $200 psychological barrier.
Following a period of steady recovery, bullish momentum has positioned Solana above $190, suggesting a potential New Year rally that could challenge its December highs.
Let’s delve into the key technical indicators and price targets that could shape Solana’s near-term movement.
Current Price Action
Solana remains in a bullish stance, trading at $192.50, with a 1.44% gain today following a strong 5% recovery last week. This recovery counters the 2.84% dip on Sunday, solidifying Solana’s position within a triangle pattern on the 4-hour chart.
Key observations from the chart:
- Green Candles: Consecutive green candles indicate buying pressure.
- MACD and Signal Lines: These have avoided a bearish crossover, pointing to a continued positive trend.
- RSI Line: Remains in a bullish trajectory, confirming increasing momentum.
Key Technical Levels
Resistance Levels
- $200 Psychological Barrier
- A critical resistance level that has reversed Solana twice in December.
- A successful breakout could trigger a more significant bullish rally.
- $209.11 (38.20% Fibonacci Level)
- This resistance trendline represents a longer-term hurdle for Solana.
Support Levels
- $187.44 (Triangle Support)
- A loss of momentum could test this level, providing key support within the current pattern.
Price Predictions
Bullish Scenario
If buying momentum continues, Solana is poised to:
- Test the $200 level by December 31.
- Extend the rally to challenge the $209.11 Fibonacci resistance.
Bearish Scenario
In case of waning momentum:
- Solana could revisit the $187.44 support trendline.
- A breakdown below this support might signal a reversal in the short-term bullish trend.
Solana’s price action suggests a critical moment as it eyes a breakout from its triangle pattern. With technical indicators favoring a bullish outlook, the $200 mark remains a pivotal level to watch.
If Solana achieves a sustained breakout, it could set the stage for an extended rally into the new year. Conversely, failure to maintain momentum might lead to a retest of key support levels.
Stay updated for real-time price movements, as the final hours of 2024 could define Solana’s trajectory into 2025.
