Solana (SOL), the fifth largest cryptocurrency by market capitalization, has experienced a surge significant increase after correcting from a 20-month high of $125 reached on December 25.
After dipping to the $85 level on Monday, January 8, SOL has reclaimed the $100 level, showing an increase of 6.4% in the past 24 hours.
Moreover, technical analysis points to a potential bullish continuation pattern known as a bull flag on the 1-hour chart of Solana, suggesting the possibility of further price gains beyond the previous high.
Solana optimism for price breakout
Technical analyst Ali Martinez does identified a bullish pattern known as a bull flag formation on Solana’s hourly chart. A bull flag is characterized by a period of consolidation that follows a strong upward movement.
In this case the dive to the $85 level can be considered as the consolidation phase. The formation suggests that SOL could see another major upward move soon.
As you can see from the chart above, to confirm the validity of the bull flag pattern, SOL must reach a decisive close above the $110 resistance level. Such a breakout could catalyze upward momentum and push the price to new highs.
If the bull flag pattern holds, Ali Martinez expects SOL could aim for an ambitious target of $163. However, Solana is confronted multiple resistance levels which it must overcome to reach the potential goal indicated in Ali Martinez’s hourly chart analysis.
The $110 resistance, the $120 barrier, and the 20-month high of $125 pose significant hurdles to Solana’s price action. These levels have the potential to hinder further upside as they have previously acted as resistance during the 2022 bear market.
Furthermore, the $132 and $137 levels are expected to provide additional resistance as these were the price points from which Solana’s price fell in April 2022.
Finally, the $151 and $154 levels will serve as the final thresholds for Solana bears to hold if they want to stop a potential price increase before reaching the $163 target.
Solana’s ecosystem-consistent growth
Despite the volatility in SOL’s price over the past month, Token Terminal’s data shows consistent growth in Solana’s blockchain ecosystem.
According to the factsSolana’s circulating market cap has risen impressively to $43.54 billion, representing a substantial 20.08% increase in value over the past 30 days.
Furthermore, its fully diluted market capitalization has increased to $57.13 billion, reflecting growth of 18.82%, illustrating strong investor interest in Solana and its potential for future growth.
Solana’s sales have also suffered substantial growth over the past 30 days, up a staggering 217.18% to $5.68 million. On an annual basis, revenue has reached an impressive $69.12 million, showing a remarkable increase of 142.15%.
Ultimately, Solana’s fees have increased significantly over the past 30 days, up 217.18% to $11.36 million. On an annual basis, fees are $138.24 million, representing a substantial growth of 142.15%, reflecting the network’s increasing usage and transactional activity.
Featured image from Shutterstock, chart from TradingView.com
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