Key Takeaways
On Sunday, Jan. 19, Solana (SOL) price hit a new all-time high of $294.33. This price increase came after the altcoin’s value soared 50% within the last seven days.
The launch of the TRUMP meme coin on the Solana blockchain also appeared to have contributed to the rally, as it created a higher demand for SOL.
Following the rally, calls have suggested that Solana’s price might have hit the top. However, with bullish patterns emerging in short- and long-term timeframes, SOL could be in line for another all-time high within a few days.
Solana’s price action over the weekend aligned with CCN’s analysis on Jan. 17. During that period, we revealed several indicators pointed to a closer move toward $300.
While SOL has yet to hit that mark, the monthly chart shows that it might not take long to achieve the milestone. As of this writing, Solana’s price has retraced to $264.33.
Despite that, the SOL/USD monthly chart shows the cryptocurrency has broken out of a cup and handle pattern.
A cup and handle pattern is a bullish pattern in which the price movement of an asset forms a “cup” shape, followed by a consolidating “handle.”
The handle usually indicates a buying opportunity, signifying a potential higher-level breakout. As seen below, SOL has broken out of the upper trendline of the handle at $169.85.
While the altcoin has hit part of the expected forecast, the chart shows that the 50% hike might not end the rally. Instead, Solana might eventually hit $315, which would amount to an 85% from the lows of Jan. 1.
Outside of the technical outlook, on-chain data shows that social dominance around Solana has hit an incredible height. Social dominance measures the rate of discussions around a cryptocurrency compared to other assets in the top 100.
When it increases, it means that there are many more conversations about the crypto involved than others. But a decrease indicates otherwise.
According to Santiment, Solana’s social dominance has risen to 17.37%, signifying increased attention toward the token. If sustained, this could trigger higher demand for SOL, and the price could climb back to its all-time high or surpass it.
Furthermore, Solana’s dominance did not end with social mentions. According to data from Artemis, the blockchain’s decentralized exchange (9DEX) volume surpassed $27 billion on Jan 19, which was more than that of BNB Chain and Ethereum combined.
Ethereum DEX volume, on the other hand, was $4.6. billion on that day , while BNB Chain stood at $5.5 billion. This hike in Solana’s DEX volume indicates that the chain attracted a high level of liquidity.
If the trend continues, then it could have a positive impact on SOL’s price.
Meanwhile, the daily chart shows that the Solana price breakout also occurred due to the surge above the falling wedge.
A falling wedge is a bullish reversal pattern defined by two descending trend lines—one representing lower highs and the other lower lows. As the lines converged, Solana’s price broke above the lower highs at $189.17 and retained the gains lost to the previous downtrend.
In addition, the Moving Average Convergence Divergence (MACD) keeps hovering around the positive region. The MACD’s position indicates rising bullish momentum around SOL.
If sustained, this could drive a quick rebound in the Solana price, which could reach $295.41 soon. Should the altcoin hit this level, it could break above the highest point of the wick and reach $315, as stated earlier.
However, a breakdown below $228.50 at the 0.618 Fibonacci retracement level could invalidate this prediction. In that scenario, the SOL price could decline to $187.17.