Rally

Solana

Bull Flag

April

Epic

Solana (SOL), the fifth largest cryptocurrency by market capitalization, has experienced a<a href="https://www.newsbtc.com/news/solana/was-solana-a-q4-2023-bubble-that-has-popped/" target="_blank" rel="noopener "> significant surge</a> after undergoing a correction from its 20-month high of $125, reached on December 25. 
Following a dip to the $85 level on Monday, January 8, SOL reclaimed the $100 level again, demonstrating a 6.4% surge in the past 24 hours.&nbsp; 
Moreover, technical analysis indicates a potential<a href="https://www.newsbtc.com/news/solana/solana-flipped-ethereum-metric/" target="_blank" rel="noopener "> bullish continuation pattern</a> known as a bull flag in Solana’s 1-hour chart, which suggests the possibility of further price gains beyond the previous high.&nbsp; 
<h2 id="solana-optimism-for-price-breakout">Solana Optimism For Price Breakout</h2> 
Technical analyst Ali Martinez has <a href="https://x.com/ali_charts/status/1744600088599572632?s=20" target="_blank" rel="noopener nofollow">identified </a>a bullish pattern known as a bull flag formation on Solana’s hourly chart. A bull flag is characterized by a consolidation period following a strong upward move.&nbsp; 
In this case, the<a href="https://www.newsbtc.com/analysis/sol-price-prediction-solana-drop-68/" target="_blank" rel="noopener "> dip to the $85 level</a> could be considered the consolidation phase. The formation suggests that SOL may experience another significant upward move shortly. 
<img loading="lazy" decoding="async" class="size-large wp-image-568801" src="https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=860&amp;resize=860%2C559" alt="Solana" width="860" height="559" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=2232 2232w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=860&amp;resize=860%2C559 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDYQFuCXwAAzxsH.jpeg?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
As seen in the chart above, to confirm the validity of the bull flag pattern, SOL needs to achieve a decisive close above the $110 resistance level. Such a breakthrough could catalyze upward momentum and propel the price to new highs. 
If the bull flag pattern holds, Ali Martinez anticipates that SOL could aim for an ambitious target of $163. However, Solana faces<a href="https://www.newsbtc.com/news/solana/solana-users-face-mounting-threat-as-drainer-attacks-surge-sol-price-plummets-13/" target="_blank" rel="noopener "> multiple resistance levels</a> that it must overcome to reach the potential target indicated in Ali Martinez’s hourly chart analysis.&nbsp; 
The $110 resistance, the $120 mark, and the previous 20-month high of $125 present significant hurdles for Solana’s price action. These levels have the potential to impede further upward movement, as they have previously acted as resistance during the bear market of 2022.&nbsp; 
Additionally, the $132 and $137 levels are anticipated to provide additional resistance, as they were the price points from which Solana’s price decreased in April 2022.&nbsp; 
Lastly, the $151 and $154 levels will serve as the final thresholds for Solana’s bears to hold if they aim to halt any potential price increase before reaching the $163 target. 
<h2 id="solana-s-ecosystem-consistent-growth">Solana’s Ecosystem Consistent Growth&nbsp;</h2> 
Despite the volatility in SOL’s price over the past month, Token Terminal data reveals consistent growth in Solana’s blockchain ecosystem.&nbsp; 
According to the <a href="https://tokenterminal.com/terminal/projects/solana" target="_blank" rel="noopener nofollow">data</a>, Solana’s circulating market cap has surged impressively to $43.54 billion, representing a substantial 20.08% increase in value over the last 30 days. 
Moreover, the fully diluted market cap has surged to $57.13 billion, reflecting an 18.82% growth, which illustrates a strong investor interest in Solana and its potential for future growth. 
Solana’s revenue has also experienced<a href="https://www.newsbtc.com/analysis/sol-price-surges-10-solana-aim-125/" target="_blank" rel="noopener "> substantial growth</a> over the past 30 days, with a staggering increase of 217.18% to reach $5.68 million.&nbsp;On an annual basis, the revenue has reached an impressive $69.12 million, exhibiting a remarkable surge of 142.15%. 
Ultimately, Solana’s fees have significantly increased over the past 30 days, with an increase of 217.18% to $11.36 million. On an annualized basis, the fees amount to $138.24 million, marking a substantial growth of 142.15%, reflecting the network’s growing usage and transactional activity. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/pdmTnk7g/" alt="Solana" width="1815" height="858"> 
Featured image from Shutterstock, chart from TradingView.com&nbsp;

Epic Rally Alert: Solana Hourly Chart Reveals Bull Flag Formation, SOL Targets $163

Table of Contents

NewsBTC

Other articles published on Jan 10, 2024

Analyst Sets Bold Targets: Bitcoin at $55K Pre-Halving, $532K by 2025

BRICS: China Stockpiles Gold for 14 Consecutive Months, Buys 9 Tonnes

Ripple's Chief Lawyer Sets 4-Day Deadline for Fake Bitcoin ETF Approval Explanation

Ethereum Outperforms Bitcoin Amid ETF Approval Speculations

Binance Futures Launches Deposit And Trade USDC Campaign With $170K In Rewards

Final Hours for GLMR Token Unlock Event

Join our free newsletter for daily crypto updates!