Bullish Pennant Confirmed on SOL: Why $400 Could Be the Next Milestone

• Solana’s bullish pennant breakout on the weekly chart highlights a potential 279% rally with a target of $400.
• The retest of previous resistance as support suggests healthy upward momentum in SOL’s price.
• Volume and momentum indicators should be closely monitored to confirm sustained buying interest in the market.

Crypto analysts find the Solana cryptocurrency interesting for the first time after it has left the bullish pennant pattern on the weekly chart. This is preceded by a technical breakout to higher ground, after which the asset pulls back to higher support levels which suggests an upward trajectory.

Technical Overview of the Breakout

The weekly chart presents a solid picture of a bullish pennant chart pattern, a standard charting pattern familiar to technical analysts who denote continuation of an upward movement. Solana real movement’s recent price confirmed this pattern when it outperformed the well-constructed resistance level; only to pull back and probe the previous breakout levels. Such behavior is normal and is usually taken as an affirmation of endorsement.

$SOL Breaks Out and Retests the Bullish Pennant on the Weekly Chart!

Buy the Dip and Hold Strong for a Target of $400 📈#Crypto #SOL #Solana #SOLUSDT pic.twitter.com/yPm3QI4Yza

— Captain Faibik 🐺 (@CryptoFaibik) December 23, 2024

For the time being, SOL price has held support levels, reversing from key areas that were formerly a resistance level. Such retests are important, as they are always followed by a probable increase when accompanied by other bullish signals.

Projections Based on Historical Patterns

There is usually expected a relatively large rise to the breakout of a bullish pennant; the potential target could be determined by measuring the height of the pattern and then projecting it from the breakout level. Using this analytical framework for Solana, the price target could be as high as $400 which could approximately be 279% higher than nowadays value.

Nevertheless, while using the patterns obtained on the base of technical indicators, one receives certain information, but not insurance. Whether this target will be achieved or not will depend on the market sentiment, general economic conditions, and the new development of the overall Solana ecosystem.

This cryptocurrency is very sensitive to changes in broader market factors or to shifts in regulatory policies affecting the cryptocurrency market. Whether this target will be achieved depends again on an interfusion of the technical and fundamental indicators with regard to the cryptocurrency. For now, the breakout and retest have put SOL as one of the digital assets to look out for in the coming week.

Source