- Solana’s price was skyrocketing in 2021 from $1 to $216 in about eight months.
- This stellar ascent is likely to continue into 2022 with significant bullish signs emerging.
- Moreover, the start of a new bullish sprint will act as a tailwind for SOL, pushing it around 713%.
Solana’s price performance has been exceptional in 2021, and this trend is likely to continue into 2022. There are three reasons for this optimism, all of which anticipate a bullish outlook for SOL.
Solana Price and Q4 Crypto Markets
Solana price is bullish and has been that way since its inception. Partners that support/invest in it include FTX’s Alameda Research, CMS Holdings, and other big names. Moreover, SOL finds its place in many popular investor portfolios such as Multicoin Capital, Sino Capital, etc. These big and important investors are backing the project with the “Ethereum-killer” listing which is one of the reasons for Solana’s massive returns over the past 8 months.
Unlike other Ethereum killers, who have never been able to stand up to Ethereum, let alone steal market share, SOL has played an important role in DeFi and its events and continues to slowly push users away from the ETH ecosystem.
While Solana’s backing makes it a very attractive investment, that’s only half of the reason. The other halving includes the upcoming bullish trend – or Rise 2.0 if you will – which is likely to send cryptocurrencies skyrocketing. But what makes this second phase interesting and the most requested cycle is that it takes place in the last quarter of the year. From a historical perspective, Bitcoin bulls tend to expand too much in the fourth quarter. However, Altcoins are taking this to a new level, increasing their market value many times over.
Therefore, we expect it will be in the second half of the period leading up to the big buy, with pressures from retail and institutions, with a significant tailwind for Solana’s price, hitting unfathomable levels.
Technologies to drive SOL the rest of the way
From a technical perspective, the daily and weekly chart is showing an interesting but bullish look for Solana price. The daily time frame shows that the SOL rose by 713% between July 21 and September 8, forming the flag column – the first component of the bullish flag or pennant pattern. This exponential growth was followed by consolidation that created three lower highs and higher lows, resulting in a pennant forming when connected using trendlines.
Taken together, the period from July 21 to October 20 and the consolidation that followed is a continuation pattern known as a bullish pennant. This technical formation is forecasting a 713% rise to $1,336, which is obtained by adding the distance of the flag pole to the breakout point at $164. A more conservative estimate might be a 61.8% Fibonacci extension of the poll, which leads to a 440% rally to the $721.60 target price.
Solana price broke the upper trendline of the pennant on Oct 20th and is up 21% to where it is currently. Going forward, investors can expect SOL to continue its upward trend by 713% to reach its theoretical target of $1,336 or the more conservative price target of $721.60.
SOL/USDT 1-day chart
Interestingly, the weekly chart for Solana price shows that it is currently hovering above the $174 resistance. This barrier has prevented SOL from climbing higher for the past five weeks, although the recent 21% rally appears to have done the trick.
Investors should wait for a decisive close above $174 to confirm that this rally was supported by real buyers. Assuming SOL overturns the $174 barrier, a retest of that barrier (although unlikely) would act as secondary confirmation and turn it into a support floor. This development is likely to trigger a new bull run on a higher time frame.
What makes this climb even more certain is the red “first” sell signal from the Momentum Reversal Indicator (MRI) on the weekly time frame. This indicates that investors do not need to worry about unexpected selling or rising selling pressure.
SOL / USDT 1-week chart
As things look for Solana price, a breakdown of the lower trendline of the symmetrical triangle at around $143 will invalidate the bullish pennant. However, this does not invalidate the uptrend surrounding SOL. In some cases, that decline can extend, pushing SOL up to $130.