Solana price appears prime for a bull rally, according to market analysts, despite the recent pullback across the cryptocurrency market.
Analyst Ali Martinez believes Solana could be in for a major upside as the current price pattern mirrors what happened three years ago.
In 2021, Solana’s price formed solid support at $24, consolidating at lower highs for months. The price later broke out above the descending trendline, causing a massive rally that saw SOL break from the $24 support zone to $35, registering a 45% price gain.
Martinez notes that Solana could be gearing up for a similar price action. Since April, Solana has held the $122 support level, with the price creating a steady descending trendline. However, SOL has now broken out above the trendline, indicating a significant rally.
If history repeats itself and SOL makes a 45% upswing, the price could reach $240 in the coming days.
As of 13:12 EST on July 25, Solana was trading at $171. The price decline mimics the bearish sentiment witnessed across the broader cryptocurrency market.
While the recent downtrend rattled some traders and triggered selling activity, the Relative Strength Index (RSI) at 54 shows buyers are taking advantage of the price decline to accumulate.
The RSI line has also steadily risen after falling to oversold levels below 40. The rising RSI and the price recovery confirm the bullish thesis that an upward momentum for Solana is building.
Whales Are Staking SOL
Large Solana whale addresses are showing diamond hands by not only holding but also staking SOL tokens.
According to Lookonchain, Solana whales transferred 238,893 SOL from the Binance exchange to a staking platform in the last two days. These tokens were worth $41.4M at the time of transfer.
These large Solana addresses’ stakes show an unwillingness to sell. These whales are choosing to hold SOL long-term, potentially awaiting further gains.
Data from Coinglass also shows that Solana futures open interest has increased significantly from $2.48 billion on July 20 to $2.74 billion. The 10% surge in SOL futures open interest confirms the strength of the bullish trend and further indicates high market participation around Solana, which is also a positive indicator.
As ZyCrypto reported, Wall Street giant Franklin Templeton’s recent endorsement of Solana is igniting hopes for a Solana ETF and driving bullish momentum.
