Trading expert breaks down Solanas journey to 4000
An expert analysis by TradingShot suggests that the price of the decentralized finance platform Solana (SOL) could potentially surge to over $4,000. The forecast, shared in a recent TradingView post on June 14, is based on an examination of Solana’s price movements, indicating that the cryptocurrency’s bullish trend remains strong.
The expert acknowledges that Solana has been undergoing a correction phase since reaching a peak in March 2024 after a significant rally throughout 2023, necessitating a technical realignment. The analysis focuses on the one-week Relative Strength Index (RSI), which peaked in March, forming a double top similar to a pattern observed in August 2020. Despite some bearish territory, the RSI has stabilized around 41.50.
However, the correction appears less severe now, with the one-week moving average (MA50) consistently providing support since a bullish breakout in late September 2023. TradingShot highlights the importance of the RSI’s bull cycle buy zone as an ideal entry point for investors, suggesting that Solana’s price has not yet reached its lowest level.
Looking ahead, the analysts explore Solana’s historical performance and potential trajectory. They note that if Solana replicates the growth from the previous cycle, it could potentially peak slightly above $4,000. This milestone would position Solana close to established peers like Ethereum (ETH) and mark a significant achievement for the network.
In the short term, crypto analyst Ali Martinez points out that Solana has reached a critical support level at $141, indicated by the TD Sequential buy signal. This suggests a possible rebound for the cryptocurrency, with the potential for a recovery lasting from one to four daily candlesticks. At the time of writing, Solana is trading at $145.66, showing a 1.2% gain in the last 24 hours but correcting by almost 9% on the weekly chart.
It is important to note that the content provided should not be considered investment advice, as investing is speculative and involves risks to your capital.
