Solana (SOL), the fifth-largest cryptocurrency by market capitalization, could be on the verge of a significant breakout, according to the co-founders of Glassnode, known as “Negentropic” on X (formerly Twitter).
In a Thursday tweet, the analysts highlighted SOL’s recent rebound toward $230, which unfolded within a descending triangle pattern, calling the price action “highly encouraging.”
“SOL hit the marked zone and rebounded toward $230. If it surpasses $235 on a daily timeframe, it could break the price compression, targeting the previous high of $264. Will SOL reach new heights?” they wrote.
Additionally, they emphasized that Solana’s daily RSI remains neutral and well below overbought territory, signaling favorable conditions for further upward momentum. The duo also pointed out the potential for spillover effects into Solana ecosystem tokens like JUP and WIF if SOL sustains its rally.
Other analysts share similar optimism. Popular analyst RLinda offered a slightly different perspective, emphasizing the importance of Solana’s ongoing consolidation between $221 and $265. Notably, the analyst described this consolidation phase as a “healthy and necessary” development for sustained growth, supported by favorable macroeconomic drivers like Bitcoin’s climb past $105,000, altcoin season trends, and supportive regulatory policies.
RLinda further argued that a breakout above $265, reinforced by bullish support, could open the door for Solana to explore new highs with minimal resistance.
“Once $265 is breached, the path becomes clear for SOL to test uncharted territory,” she noted, highlighting the consolidation phase as a foundation for long-term bullish momentum.
Elsewhere analyst Ali Martinez presented an even more ambitious forecast for Solana, predicting a surge to $4,000 with the emergence of a “cup and handle” pattern.
That said, despite this optimism, Solana’s performance has been relatively subdued compared to the explosive gains of assets like XRP and ADA. In the past month, SOL has risen by 9.45%, a modest uptick influenced by external factors, including regulatory developments.
Notably, last week, the Solana-based platform Pump.fun, known for its meme token ecosystem, faced regulatory scrutiny from the UK’s Financial Conduct Authority (FCA). Following a warning from the agency, Pump.fun restricted access to its site for UK users, citing compliance with local regulations.
“This company may provide or promote financial services or products without our permission. You should avoid dealing with this company and beware of fraud,” the FCA stated on its website.
The platform, which generated record revenue of $93 million in November, a 208% increase from October, has been a significant contributor to Solana’s ecosystem growth. However, the temporary shutdown of its streaming services in late November led to a one-third decline in revenue, casting a shadow over Solana’s performance.
Nevertheless, despite facing regulatory pressures, Solana has also emerged as the most attractive blockchain for developers in 2024. According to a report by Electric Capital, of the 39,148 developers entering the crypto industry this year, 7,625 chose Solana, marking the first time since 2016 outpacing Ethereum in developer growth and underscoring its growing appeal.
At press time, SOL was trading at $223, reflecting a 3.37% drop in the past 24 hours.
