Solana (SOL) price is gaining momentum with a double bottom pattern emerging, suggesting a bullish reversal could be on the horizon.
Solana Double Bottom Pattern and Key Levels
In the 4-hour timeframe, Solana price has formed a double bottom pattern with two low points around $190-$195, which is significant support. This formation usually suggests that the bearish pressure will reduce. The neckline of this formation, positioned near $205, is the pivotal resistance level. If the price remains above this zone, a bullish setup could be further supported, projecting a target of $240.
Technical Indicators Point to Momentum Increase
The Relative Strength Index (RSI) is currently at 52.16, recovering from oversold territory and indicating increasing buying strength without overbought risks. This suggests that Solana price has room for further gains if the bullish momentum persists. The MACD also supports this outlook, with the MACD line crossing above the signal line and the histogram expanding positive bars, indicating an increasing upward trend.
Market Overview and Long-Term Predictions
The Solana derivatives market shows an open interest of $2.8 billion, up by 2.40% in the last 24 hours, indicating increased trading activity. Long-term analysis suggests that Solana could potentially reach $600 in the near future based on price movement, economic factors, and cycle phases. However, 30-day moving average analysis suggests a fair rise to $210.38 by March 9, 2025.
With increased trading activity and positive technical signals, Solana prices may soon see a strong bullish rally if key resistance levels are supported.
