Solana (SOL) rallied 8.53% to $84.73 on February 14, catching the attention of traders and analysts as a fractal pattern indicates a potential market turning point. The token’s 24-hour trading volume reached $6.32 billion, and its market capitalization stands at $48.12 billion, accounting for 2.01% of the total cryptocurrency market value.
Technical analysis indicates that SOL is potentially entering a critical accumulation phase. Experts refer to historical fractals that preceded previous significant rallies, indicating both risks and opportunities for traders closely observing support levels.
Upside Targets Range Between $500-$1,000
Market analysts are going back to a historical fractal that preceded a significant rally in Solana. According to a recent post by CryptoPatel, in Cycle 1 (2020-2021), SOL rallied from $1.07 to $260, registering a massive 24,234% gain before crashing 97% to $7.78 in a deep correction.
During Cycle 2 (2022-2025), Solana saw a massive 3,700% increase from $7.78 to $295. Nonetheless, the cryptocurrency is currently down by about 77% from its peak, and it is entering yet another deep correction cycle. According to Crypto Patel, if the historical fractal pattern continues to replicate itself, then another decline to the 0.5-0.618 Fibonacci levels is still possible before any actual recovery.
Crypto Patel has also picked out a possible accumulation range of $30 to $50 in case the price continues to fall. On the other hand, the possible targets for Solana could be in the range of $500 to $1,000 in the long term, although these estimates are based on the repetition of a historical pattern and not predictions.
Experts have also pointed out that past performance is not an indicator of future success and that careful analysis and risk management are advised.
Also Read | Solana Stabilizes Above $76 Floor as Momentum Builds for Potential Breakout
SOL Faces Resistance Below 200-Day EMA
SOL recently saw a strong sell-off event that created a strong bottoming candle with a long lower wick, which is typically a sign of buying pressure at lower levels.
Currently, the price reached the 0.382 Fibonacci level, which corresponds to a high-volume point between the S1 and S2 pivot points. However, the daily Relative Strength Index (RSI) is currently in oversold territory, although no clear bullish divergence has been established yet.
Although the recent price movement indicates that the cryptocurrency may be trying to form a short-term bottom, the overall trend is still bearish since SOL is currently below its daily pivot and 200-day EMA.
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