Solana Echoes Bitcoins Path$500 Possible if Pattern Holds
- Solana mirrors Bitcoins 2024 breakout pattern, holding firm around $140 after dipping to $120.
- Analyst predicts Solana could surge to $500$600, echoing Bitcoins 75% rally post-liquidity grab.
- Whale stakes 194,000 SOL ($28.7M), signaling strong conviction in Solanas long-term outlook.
Solanas recent price action is sparking intrigue across crypto circles, as fresh analysis points to a scenario eerily similar to Bitcoins impressive 2024 breakout.
On May 6, analyst Mister Crypto highlighted that Solanas ($SOL) chart is shadowing the same structure that catapulted Bitcoin from $40,000 to above $70,000 earlier this year. The pattern shows SOL holding firm around $140, a zone Mister Crypto described as a critical juncture that could ignite its next leg up.
His detailed side-by-side chart reveals two prominent peaks followed by a pronounced dip, which he terms a Liquidity Grab. Bitcoins liquidity sweep preceded a sharp rally, and Solanas movement seems to be mirroring it closely. After dipping to nearly $120, Solana has shown signs of stabilizing, hinting the correction phase might have bottomed out.
The chart shows Bitcoin rocketed by over 75% in early 2024 within a matter of weeks after this liquidity grab, suggesting potential fireworks ahead for SOL. If the pattern holds, Mister Crypto predicts altcoin might soar to the $500$600 range.
$SOL looks identical to Bitcoins setup in 2024. Massive Pump Incoming! he declared on X, underscoring his confidence in the unfolding pattern.
Solana Whale Activity Boosts Confidence
Bolstering this outlook, a significant whale movement has added fresh momentum to its bullish case. Recently, a market heavyweight staked over 194,000 SOL, an investment worth around $28.7 million. This sizable commitment, spotlighted by Crypto Rover, is one of the larger single staking transactions Solana has seen in recent times.
Large-scale staking like this typically signals deep conviction in a networks strength and long-term potential. Analysts view such moves as strong endorsements, especially when market conditions appear uncertain. When big players choose to lock up funds, it often reflects solid confidence in both the technology and future price prospects.
These whale moves are being closely watched by traders and analysts, with many interpreting the staking as a positive sign for Solanas stability. Amidst an uncertain broader market, seeing high-value commitments provides reassurance that influential investors are betting on further gains.
Volatility Clouds Short-Term Outlook
Despite growing optimism, Solana faces its share of hurdles. The cryptocurrency has been volatile lately, hovering around $143 after struggling to break through higher resistance levels. A recent dip saw SOL retrace from nearly $155, slipping below key markers at $150 and $148, and hitting a low near $141.71.
Technically, SOL is currently trading beneath the 100-hourly simple moving average, a sign that bears still have some grip. Immediate resistance lies around $147, with a stronger ceiling near the $150 mark. If it fails to clear these levels soon, analysts warn it could resume its slide.
On the downside, support appears around $142. A breach of this could trigger further declines, potentially pulling the price down to $135 or even as low as $122 if selling pressure intensifies. Traders remain cautious, aware that while the chart pattern is promising, key technical levels need to flip for the rally to truly ignite.
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Read more: https://www.tronweekly.com/solana-echoes-bitcoins-path-500-possible/
Text source: TronWeekly
