Buy before it soars: Key levels to watch as Solana (SOL) targets new highs 
Cryptocurrency Nov 19, 2024 Share
Solana (SOL) is experiencing a robust rally, having traded as high as $248 on November 18, just 5% below its all-time high of $260, recorded in November 2021.
This remarkable price surge, representing a 52% gain over just 14 days, is fueled by bullish market activity and strong technical patterns.
Notably, Solana’s ability to consolidate instead of pulling back after such gains signals the potential for new all-time highs, with some analysts predicting a push toward $400.
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Adding to its momentum, Bitcoin’s (BTC) broader market rally has created a favorable environment for altcoins like Solana while its fundamental backdrop continues to strengthen.
Technical analysis and key levels to watch
According to a recent TradingView post by analyst RLinda, Solana’s price action is consolidating near its key resistance level of $245.3, a critical zone referred to as the “trigger zone.”
A breakout and consolidation above this level could attract aggressive buyers, pushing the price toward the next resistance at $248.5. Beyond that, the all-time high of $259.9 remains the ultimate target in the short term.
Solana price analysis chart. Source: RLinda/TradingView
On the downside, $242.3 acts as an immediate support level, followed by $238, which could provide a buffer in case of a short-term correction.
A further drop might see the price testing $234.3, which is expected to act as a strong support zone before any upward continuation. These levels will be critical in determining the coin’s trajectory in the coming days.
Catalysts behind the current rally
A mix of technical and fundamental factors have fueled Solana’s impressive performance, solidifying its position as a top contender in the altcoin market.
Memecoin frenzy on Solana
The memecoin ecosystem has played a significant role in driving Solana’s recent surge. Demand for tokens like ACT, PNUT, and BONK has soared, with PNUT reaching a $500 million market cap within 24 hours of its Binance listing, according to data from CoinGecko.
Momentum peaked after BONK announced a landmark burn event, set to remove 1 trillion tokens from circulation before December 25, further energizing the market.
Speculation of a Solana Spot ETF
Growing speculation about a potential Solana spot ETF has also bolstered bullish sentiment. On November 10, VanEck filed an application with the SEC for a Solana ETF.
While only Bitcoin and Ethereum ETFs have been approved so far, the political landscape could shift following recent U.S. elections, increasing the likelihood of approval in 2025.
Anticipation surged further after SEC Chair Gary Gensler hinted at a possible resignation on November 14. This has fueled optimism for more favorable crypto regulations under new leadership, with SOL’s open interest soaring to $5.60 billion as of November 19, according to CoinGlass.
Bullish patterns and market sentiment
Following this recent movement, crypto analyst Titan of Crypto observed that Solana’s monthly chart displays a breakout from a well-defined cup-and-handle pattern, a classic bullish setup often associated with substantial price appreciation.
“Solana is breaking out from the Cup & Handle pattern on the monthly timeframe. Once it clears its previous ATH, it could soar straight to $400,” the analyst added.
The breakout above $245 and sustained consolidation at this level signal strong upward momentum, with a possible rally toward $400, supported by favorable market conditions.
Solana price analysis. Source: Titan of Crypto/ X
Solana price analysis: Path to new highs
At press time, Solana is trading at $245, reflecting a 0.6% gain over the past day and an impressive 54% monthly increase.
Solana seven-day price chart. Source: Finbold
With the price consolidating near $245.3, a breakout above this level could trigger a rally toward $259 and, eventually, $400.
A combination of factors, including growing memecoin activity, heightened open interest, and ETF optimism, provides a solid foundation for sustained bullish momentum in the weeks ahead.
Featured image via Shutterstock