- Solana price has formed a bullish pennant chart pattern and remains above the 200-day EMA, indicating potential for further upside.
- On-chain data shows robust performance for the Solana network, with increasing unique active wallets, volume, and transactions.
- Technical analysts spot multiple bullish patterns for Solana price, including a symmetrical triangle pattern, a double-bottom pattern, and bullish momentum indicators like RSI and MFI.
Solana (SOL) price has shown steady gains this week as crypto markets rebounded and on-chain data revealed strong network performance. The major altcoin could be on the cusp of a larger breakout based on bullish chart patterns that have emerged.
Recent Price Action
The native token of the Solana blockchain rallied to $16.38 on Friday, its highest level since June 7th. SOL has rebounded by 32% from its monthly low.
Solana’s recovery coincided with data showing its network continues to perform well. According to DappRadar, the network’s unique active wallets, volume, and transactions all rose over the past week.
Solana-based meme coins like Dogwifhat and Bonk also saw gains as the network maintained its dominance in decentralized exchange (DEX) volume. For instance, Dogwifhat’s 24-hour volume was $842 million compared to Dogecoin‘s $682 million and Shiba Inu’s $751 million.
Numbers from DappRadar show Solana DEXs facilitated over $132 billion in volume in the past 7 days while Ethereum DEXs saw $119 billion in trades. Raydium, Orca, and Jupiter are among the network’s top DEXs.
Encouraging Chart Patterns
Crypto traders are growing optimistic about further upside in Solana, citing bullish technical patterns.
First, Solana has formed a symmetrical triangle approaching its apex. As this triangle emerged after an uptrend, it can be considered a bullish pennant continuation pattern. Breakouts above the upper trendline often occur with pennants.
Additionally, SOL created a strong double bottom pattern at $12.05. It failed to break below that level multiple times in April, June, and July. Double bottoms are highly bullish chart formations.
SOL remains above its 200-day exponential moving average (EMA), a key long-term support level for crypto assets.
Momentum indicators like the Relative Strength Index (RSI) and Money Flow Index (MFI) show SOL has room to rally before becoming overbought. The RSI recently crossed above 50 to signal bullish momentum.
With SOL at the 61.8% Fibonacci retracement level, a move to retest $20 – its May high – could occur if bulls remain in control.
Conclusion
The confluence of positive on-chain data, strengthening technical patterns, and growing trading volume suggests further upside could be in store for Solana price. SOL may stage a larger breakout in the near future if it can convincingly clear the $20 resistance barrier. Continued strength in the broader crypto market would also aid its recovery.
