A bull flag pattern in the Solana weekly chart signals a potential price surge to $1,400, supported by strong development activity and positive sentiment.
A recent analysis by Ali Martinez highlights a bull flag pattern in Solana’s (SOL) weekly chart against the US Dollar. This pattern, often a continuation signal, suggests the potential for further upward movement.
The bull flag nobody is talking about! #Solana $SOL pic.twitter.com/PoX8zpz5HH
— Ali (@ali_charts) July 18, 2024
The bull flag pattern is characterized by two main elements: the flagpole and the flag. The flagpole represents a strong upward move, while the flag indicates a consolidation phase where the price moves within a narrow range. In Solana’s case, the flagpole starts around $20 and reaches up to $200, followed by the consolidation phase.
The chart covers a period from late 2023 to mid-2024. A black line extending from the flag’s apex indicates a potential breakout point. If Solana breaks above the upper boundary of the flag, it could signal a new upward move, potentially reaching up to $1,400.
Crypto Community Believes It’s Possible
The crypto community has expressed varied opinions on Solana’s (SOL) potential following the recent analysis. One commenter remarked that the bull flag was widely discussed before its formation, but many traders were shaken out as it began to form.
Another individual speculated about a significant increase, suggesting a potential tenfold return and questioning Solana’s performance relative to the overall market and total market capitalization.
In addition, some community members shared varying technical analyses. A particular market watcher noted that their recent chart depicted a symmetrical triangle rather than a bull flag.
On-Chain Metrics Support Bullish Outlook
Meanwhile, recent data from Santiment supports this bullish outlook. Solana’s price movements have shown significant fluctuations, with notable upward trends followed by periods of consolidation. Peaks in development activity specifically often coincide with or precede price increases.
For instance, development activity surges in mid-February and mid-April correspond with price increases. Notably, SOL’s development activity and price are currently in an upward trend, indicating potential for further increases.
It is important to also note that increased social volume typically aligns with higher price levels. As seen in Santiment’s chart, high social volume in mid-March and early May coincided with upward price movements.
Ultimately, positive sentiment peaks often precede price surges. High positive sentiment in late January and early April corresponded with price increases, reinforcing the bullish outlook if these metrics surge again.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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