Solana (SOL) has seen a rebound in price, up 5% in the past 24 hours. At this time, the altcoin is trading at $233.
Looking at the coin’s daily chart, we see strong indicators of bullish momentum, suggesting a recovery to reconquer the historic peak of $264.63 — last seen on the 22nd. November — may be approaching. This analysis explores the two factors driving this bullish outlook and explains why Solana could soon retest its historic price peak.
Two Key Reasons Solana Can Expand Profits
First, a bullish flag pattern has emerged on the SOL/USD daily chart, and the coin’s price is trading near the upper boundary of the pattern.
A bull flag pattern is formed after a strong price increase, followed by a period of convergence that resembles a downward sloping or horizontal flag. This pattern signals the asset to temporarily stop before potentially resuming the uptrend.
As with SOL, when the price trades near the upper boundary of the “flag” portion, this indicates strong bullish momentum, as buyers keep the price high within the converging range. A breakout above the upper line of the flag confirms this pattern and is usually accompanied by a significant price rally that mirrors the height of the previous section.
Additionally, on December 11, SOL bounced off the dynamic support that the Super Trend indicator provided at $212.50 and has since increased 10%. This indicator measures the overall direction and strength of a price trend. It appears as a line on the chart, changing color based on the current trend: green indicates an uptrend, while red shows a downtrend.
When the Supertrend line appears below the price, it acts as a support level, signaling an uptrend and showing that the price is likely to sustain above this level. As in the case of SOL, if the price respects this support level, it reinforces the bullish sentiment and hints at a continued rally.
SOL Price Prediction: Why Breaking Below the ‘Flag’ Is Dangerous
SOL is currently trading at $233.09, just above the support formed at $228.14. A successful break through the upper border of the bull flag’s convergence range would push the coin’s price towards the historic peak of $264.63.
If the price of Solana falls below the “flag” side of the bullish flag pattern, it will invalidate the previously predicted positive outlook. This break would indicate that selling pressure has broken through the convergence, threatening to redirect momentum downwards. In this case, Solana copper price could drop to 187.32 USD.
