Market observers have been praising Solana’s (SOL) price action all month long. The fifth-largest cryptocurrency by market capitalization has put in a powerful performance despite market turmoil, recently reclaiming the $160 support level. Analysts suggest that SOL could repeat history and start a rally towards a fresh all-time high (ATH) soon.
Solana breaks out of consolidation range
In August, Solana’s strength was tested during the market recession. Several analysts named SOL one of the strongest assets this month, noting its performance over the past three weeks.
SOL price fell over 30% during the initial crash, falling to $110 before rebounding. A week later, the token again retreated to the $140 support level but maintained a sideways movement in the $140-$155 range until Saturday.
Some market observers said the token was in a “great spot” for accumulation as it was “still in the same sideways range while the rest of the market hit lower lows.” They also predicted that Solana would take off as soon as Bitcoin (BTC) surged.
Since then, Bitcoin has surged 10%, hovering between $63,000 and $64,000 over the weekend. SOL has also seen favorable price action, rising 13.9% over the past three days.
SOL broke through the $155 resistance level on Saturday after an 8% gain. The cryptocurrency continued its upward trajectory, reaching $162 before pulling back. The token continued to trade within this fresh range throughout the weekend.
Will SOL reach $600?
Solana’s recent performance has sparked bullish sentiment among investors and pundits alike. Some analysts have noted that maintaining current levels could usher in another leg of SOL’s growth. Ali Martinez recently said that the $164 resistance level was key to Solana’s rally.
According to the analyst, the token is forming an “Adam & Even” pattern, suggesting a potential upside to $164. If the token breaks through this resistance, its price could surge 33% towards the $220 price range, a level not seen since delayed 2021.
Similarly, Altcoin Sherpa has set resistance at $165 as a level to watch. Sherpa believes SOL is trading within an “interesting level” but suggests traders “be patient for a breakout of $165.”
According to the post, a breakout of this level could push the price towards the resistance levels of $188 and $201. Meanwhile, a failed attempt could send the price into the previous range. However, Sherpa believes the cryptocurrency will “solidly” break through its ATH price in Q4, regardless of the outcome.
Cryptocurrency analyst Jelle stated that SOL “is looking more and more ready to expand, especially against ETH.” According to Jelle, Solana’s chart looks ready for a price discovery as it resembles SOL’s performance from three years ago.
According to the analyst, token “it is holding above the average RSI level while hovering around the 25-week EMA” as in 2021. This performance was followed by a keen rise that took the price to the SOL ATH of $259.
On this basis Jelle is considering that Solana is poised to rally towards a fresh ATH in the $450-$600 range for this cycle. SOL is currently trading at $160, up 2% and 13.9% on the daily and weekly time frames.
Featured image from Unsplash.com, chart from TradingView.com
