The Supertrend indicator on Solana’s (SOL) weekly chart has issued a “buy” signal, historically linked to significant price increases. This indicator tracks Solana’s price trend similarly to moving averages and incorporates the average true range to help traders identify market trends. Past signals of this nature have preceded dramatic rallies, including gains ranging from 620% to 3,200% during the 2021 bull market. The last signal issued in July 2023 saw Solana’s price rise from $20 to above $295.
Recently, the Supertrend indicator shifted from red to green as Solana’s price crossed the $220 mark, suggesting a potential upward movement. Experts note that a weekly close above $220.45 would be a strong buy signal. A similar scenario last year saw the price surge from $39 to $294. Given this historical trend, Solana’s price could potentially reach $1,000 in the coming months, especially with increasing demand from treasury companies and the possible approval of a Solana spot ETF in the United States.
Currently, Solana faces resistance near $250, where profit-taking and buyer fatigue have caused a price pullback. Analysts report a 7% decline after reaching this key resistance level, with the price dropping from $250 to around $237. A descending channel is forming on the four-hour chart, with critical support between $230 and $227.
Despite these challenges, many experts remain optimistic about further price gains, anticipating a rise to $300 or higher. The crossover of the 9-week EMA above the 15-week EMA confirms this bullish trend. If Solana breaks resistance between $250 and $260, the next major resistance is expected at $295, where there is an increase in open sell contracts and total value. Investors are advised to conduct thorough research and exercise caution, as cryptocurrency investments carry inherent risks.
Source: binance
