Based on current market dynamics, analyst Taylor predicts Solana (SOL) will recover soon.
The analyst highlighted how Solana experienced a double fake-out, initially causing concern but invalidating the bearish structure. This shift has reinstated a bullish outlook for SOL, which was also earlier predicted to go red. Historically, the expert pointed out that low RSI (Relative Strength Index) values for Solana signal good buying opportunities. This pattern was recently held when a price drop allowed the analyst to purchase Solana at a discounted rate. The acquisition during this dip resulted in substantial gains, reinforcing confidence in Solana’s long-term potential. The expert emphasized recognizing such opportunities in the volatile cryptocurrency market.
He moved on to potential future outcomes for SOL, which is predicted to hit $840. He gives two possible scenarios, including creating a new trend or continuing the current bullish structure. The analyst strongly believed in Solana’s long-term viability and plans to continue dollar cost averaging within the existing structure. This strategy, which involves regularly purchasing Solana regardless of price fluctuations, aims to mitigate risk and maximize potential returns over time.
Additionally, the expert discussed their broader coverage and analysis of SOL on a second channel, where they share insights and strategies related to the cryptocurrency market. This platform has been instrumental in documenting successful trades, particularly during recent price dumps. These trades have provided significant gains and demonstrated the analyst’s adeptness at navigating market volatility. Other analysts predict Solana could go to as high as $1000.
Solana Price Review: How is SOL Doing?
An in-depth analysis shows that the chart features Bollinger Bands with a 20-period Simple Moving Average (SMA). The bands are set at a standard deviation of 2 from the SMA, indicating volatility. The price of Solana experienced a significant decline, reaching a low near the lower Bollinger Band around $118.48. The Bollinger Bands expanded during the price drop, indicating increased volatility.
4-hour SOL/USD Chart | Source: TradingView
On the other hand, we see that the Awesome Oscillator (AO) Analysis is a histogram that fluctuates around the zero line, indicating market momentum. The AO showed a prolonged period of negative momentum (red bars) during the price decline. The price has broken above the middle Bollinger Band (20 SMA), indicating a potential bullish trend. If the price breaks and sustains above the upper Bollinger Band ($159.36), it could signal a continuation of the bullish trend with potential targets around previous highs.
