Analyst Identifies Crucial SOL Levels as Solana Shapes Bullish Megaphone Pattern
Despite the capital outflow in Solana (SOL) and the overall cryptocurrency market, an analyst has pointed out that the decentralized finance (DeFi) asset is still facing bullish sentiments. On August 1, Ali Martinez highlighted in an X post that Solana seems to be forming a bullish megaphone pattern on its four-hour chart. This pattern, characterized by higher highs and lower lows, is indicative of increasing volatility and a potential bullish breakout.
Martinez emphasized the significance of the 61.8% Fibonacci retracement level, which SOL recently corrected. This level, located around $161.92, is considered a critical support zone, suggesting a potential rebound. The Relative Strength Index (RSI) on the four-hour chart also shows oversold conditions, further reinforcing the idea of a possible price reversal.
Based on Martinez’s analysis, he suggests that traders take advantage of the current dip to the 61.8% Fibonacci level as a good buying opportunity for SOL. To manage risk, he advises placing a stop-loss between $156 and $154, just below the current support level. For potential gains, he sets a take-profit target between $200 and $259, which aligns with the upper boundary of the bullish megaphone pattern and the 1.272 and 1.414 Fibonacci extension levels. Initially, Martinez had projected that Solana would rally to a record of $1,000 in the long term.
On the other hand, another crypto expert with the pseudonym CryptoPoseidonn suggests that Solana may experience further sell-off in the coming days, with a potential drop to around $150. However, this could offer a new buying opportunity, and the expert projects that the token might rise to $500.
As of now, Solana is trading at $163 with losses of over 3% in the last 24 hours. On the weekly chart, SOL is down over 8%. In addition to the price levels suggested by Martinez, investors should also keep an eye on the immediate support and resistance levels for SOL, which are at $160 and $165, respectively.
Disclaimer: The content on this site should not be considered investment advice. Investing in cryptocurrencies carries speculative risks, and your capital is at risk.
