SOL is ready to BLOW UP, targeting $200 in the short term.
2024-10-22

If you're looking for short-term gains, jumping on SOLANA now might be a great opportunity. Let’s dive into why!
 

 Hey everyone! Today,  I’m going to analyze the SOL/USDT on the daily chart and give you some great opportunities for both spot positions and futures trades.

 1) Descending Triangle: 
SOL reached around $208 in March and has been in decline since. You might be wondering why SOL peaked in March—it's because we had a mini altcoin season back then. After that peak, SOL has been forming a large  Descending Triangle . For the past 7 months, the price has been stuck in this triangle, repeatedly testing both the support area at $125 and the descending resistance line.

 2) Volume and Pattern Interest: 
As we know, when a price is stuck in a pattern for a long time, volume decreases as interest fades. Over time, as investors notice SOL testing the $125 support zone multiple times and bouncing back, combined with positive project news and a bullish global market, they’ll see this as a potential buying opportunity. This is when reversal patterns such as  Double Bottom,  Triple Bottom , or  Inverse Head & Shoulders (H&S)  start to form at the bottom.

 3) Inverse Head & Shoulders: 
SOL recently formed an  Inverse H&S  pattern at the bottom. Here's how it works: When buyers step in and start creating upward pressure, we see the formation of the left shoulder. Sellers then step in and cause a pullback, creating the neckline. When the price drops again to the $125 support zone, buyers see it as their last chance to get SOL at a lower price, so they push the price back up to the neckline at $160.

At this point, sellers step in again, taking profits at the $160 range, causing another drop. But this time, instead of falling back to $125, the price holds around $135, as buyers don’t want to miss the opportunity. This creates the right shoulder. Once SOL breaks through the neckline at $160, sellers are disappointed and exit, while buyers push the price further up. As of now, SOL has successfully broken out of the Inverse H&S pattern.

 4) Downtrend Line: 
There’s still a major descending resistance around the $170 range, which has held the price down for about 7 months. Once this level is broken and converted into support, we’ll likely see a strong upward price momentum. Breaking through this resistance could shift the overall trend into a solid upward trajectory.

 5) Price Targets: 
SOL has successfully broken the Inverse H&S neckline at $160 and has even retested this level, flipping the resistance into support. The target for the Inverse H&S pattern is around $200 per SOL. However, there’s still the downtrend line resistance at $170 that needs to be broken first. If we break through that as well, we’ll have two breakouts: one from the Inverse H&S and one from the 7-month  Downtrend line. 

With these breakouts, combined with a potential bull run, SOL could reach a new ATH. In my opinion, SOL could hit $1,000 to $1,500 in this bull run, and if we experience a massive rally, it’s possible for SOL to reach $3,000.

 6) Futures Trading: 
For futures, you can open a long position in the $160–$165 range with 3x–7x leverage. Set your stop loss around $157–$158. However, if you're new to leverage trading, be cautious! (This is not financial advice).

 7) Spot Trading: 
If you're looking to trade on the spot market, now could be a good time to buy SOL in the $160–$165 range and hold until the bull run peaks.

 Thanks for reading my analysis!  If you like my thoughts and my vision for SOL, hit the like button and follow me! BTW, I’m very active on X. You can find me there as @odbashWizard.
