Could Solana Price Reach $240? A Rare Pattern Emerges

Solana's price has surged over 35% since June, forming a unique pattern that suggests potential gains ahead. With significant investor interest, technical developments, and strategic partnerships, SOL could reach $240 if trends continue.

Key Takeaways

Solana’s price has increased by over 35% from its June low, now trading around $176.5.
Public companies, including Bitcoin mining firm Bit Mining, are actively buying Solana tokens.
Collaborations for real-world asset tokenization are rising, enhancing Solana's market position.
SOL has shown bullish technical indicators, including a golden cross and a cup-and-handle pattern, which may lead to a price rally.
The bullish outlook hinges on maintaining support around $156.

Will Solana price hit $240 as rare pattern emerges?

Market Developments for Solana

As of August 12, 2023, Solana (SOL) was priced at $176.5, reflecting a notable increase of over 9% in the past month and a robust 40% rise from its lowest point this year. The market capitalization of Solana currently stands at $95.1 billion.

Amid positive trends, Solana appears poised for further growth, primarily influenced by several bullish developments.

Increased Buying from Public Companies

Notably, public companies are stepping up their purchases of Solana to secure a portion of the blockchain’s staking rewards. Firms like Bit Mining, Upexi, and DeFi Development Corp have recently revealed plans to acquire more tokens. For instance, Bit Mining has announced intentions to raise between $200 million and $300 million in phases to bolster its Solana holdings and create a dedicated treasury.

Tokenization of Real-World Assets

Solana is increasingly recognized as a valuable network for real-world asset tokenization. A recent influential agreement between the Solana Foundation and R3, which serves major clients such as HSBC and Bank of America, aims to leverage the Solana blockchain for asset tokenization.

Technical Indicators Suggest Growth

The network also exhibits positive technical trends, with active daily addresses increasing by more than 16% in a single day. This spike in user engagement may indicate growing interest and strengthen bullish momentum moving forward.

Bullish Patterns Highlighted

A key indicator for Solana’s potential upward movement is the formation of a 'golden cross' on its daily chart, which arises when the 50-day simple moving average crosses above the 200-day moving average. This pattern is typically associated with bullish predictions within the trading community.

Historically, a similar pattern appeared in October of last year, leading to a nearly 50% rally over the following three months. If SOL replicates this trend, it might see its price surge to approximately $240.

Additionally, Solana has formed a cup-and-handle pattern, with the cup’s base at $126.4 and resistance at around $187.74. This setup indicates a potential rally toward $248 when projecting the expected price movement from the cup’s boundaries, which aligns with the bullish outlook suggested by the golden cross.

Conclusion on Solana's Price Movement

The combination of a golden cross and a cup-and-handle pattern presents a strong bullish scenario, indicating likely continued price increases ahead. However, this optimistic outlook would be overturned if the price were to drop below the crucial support level of around $156, which represents the lower boundary of the cup-and-handle pattern.

Disclaimer: This article does not constitute investment advice and is for educational purposes only.