Solana (SOL) is set for an imminent rally — Here’s why 
Cryptocurrency Dec 24, 2024 Share
Solana (SOL) is showing early signs of a potential rebound, supported by its current technical setup.
According to prominent on-chain analyst Ali Martinez, a notable TD Sequential buy signal has emerged on the daily chart. This signal follows a period of persistent selling pressure, suggesting that the ongoing downtrend may soon reverse and pave the way for a potential recovery in Solana’s price.
Notably, the appearance of ‘’TDS 9′ on the chart suggests that the asset may have bottomed out, particularly as it rebounded strongly from the $176 support level, which served as a crucial floor during the recent downturn.
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Solana price analysis. Source: Ali Martinez/X
This recovery has propelled Solana to its current price of $191, reflecting a notable 4% increase in daily price action.
With the rebound gaining traction, the next immediate resistance is at $197. A breakout above this level could strengthen bullish momentum, potentially paving the way for higher targets.
On the downside, however, $176 remains the critical support level to monitor. A failure to hold above this level could invalidate the bullish signal, potentially exposing Solana to further declines.
More bullish projections
Adding to the optimism, an analysis by Captain Faibik highlighted that Solana has broken out of a bullish pennant pattern on the weekly chart. This breakout, coupled with strong buying momentum, signals the potential for significant gains, with projections pointing to a target of $400 in the coming months.
$SOL Breaks Out and Retests the Bullish Pennant on the Weekly Chart!
Buy the Dip and Hold Strong for a Target of $400 📈#Crypto #SOL #Solana #SOLUSDT pic.twitter.com/yPm3QI4Yza
— Captain Faibik 🐺 (@CryptoFaibik) December 23, 2024
Regulatory impact on Solana’s price
Regulatory developments are also emerging as a key factor in shaping Solana’s trajectory, with growing anticipation around the approval of spot Solana ETFs fueling investor optimism.
However, outgoing SEC Chair Gary Gensler has reportedly rejected the proposal, citing concerns over the cryptocurrency’s classification as a security, dampening immediate hopes.
Despite this setback, the Solana community remains optimistic about the prospect of regulatory approval under a potential Donald Trump administration.
Solana price analysis
At press time, Solana is trading at $194, reflecting a 7% gain in the past 24 hours. However, on the weekly chart, Solana is down 13%, highlighting the broader bearish sentiment in the cryptocurrency market.
Solana price analysis chart. Source: Finbold
The broader crypto market continues to exhibit bearish tendencies, with Bitcoin (BTC) trading below $95,000.
While Solana’s technical setup is promising, it is crucial to monitor broader market trends and key support levels to confirm the bullish trajectory. If Solana maintains its current momentum, it could achieve its projected target in the coming months, potentially rewarding patient investors with significant gains.
Featured image via Shutterstock