The performance of Solana (SOL) in the past month has been a bit disappointing although its yearly gains are still robust.
A temporary weakness in the meme coin segment – a major source of activity for this layer-one blockchain – could be partially responsible for this decline as market participants have been taking some profits following the post-election rally.
Similar to the performance of other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP (XRP), the native token of the Solana blockchain $SOL has experienced a 15.3% drop in the past 30 days.
Solana Price Action Forms Bullish Flag Pattern
Despite the frustration that this recent price action could produce among investors, there are indications that this temporary setback could actually be setting up the token for a major breakout to the $300 area in the following weeks.
In this regard, the popular crypto analyst Jelle, whose account on X is followed by almost 100,000 users, the latest drop has formed a pattern known as a bullish flag.
This formation typically resolves to the upside and precedes a major increase in the price of the asset being analyzed that could match or exceed the size of the previous uptrend.
From November 5 to 23, the price of $SOL jumped by 54%. If the bullish flag catalyzes a similar move, that would push the price of this digital asset near or above the $300 mark – a major psychological and financial milestone that would make Solana the fourth most valuable cryptocurrency, right above XRP.
According to technical analysis literature, bullish flags tend to have a success rate of 70% while the daily chart – the one cited for this prediction – is the most reliable of all for this particular pattern.
Meanwhile, statistics indicate that the target price – in this case, $300 – is reached in around 60% of all cases.
Although none of these estimates are 100% reliable or constitute investment or trading advice, this is what historical data suggests.
The Federal Reserve’s decision to cut interest rate by another 25 basis points may influence this positive move for $SOL as well as traders are more confident than before that financial conditions will continue to ease.
Higher liquidity tends to have a positive influence on the price of risky assets like cryptocurrencies. Hence, the Fed's decision could be a positive driver in the near term for the price of $SOL.
Moreover, crypto traders are gearing up for another positive technical event known as the "Santa Claus rally", which tends to occur from the week after Christmas until January 2.
The combination of a positive technical setup and these two macro tailwinds seems to favor the thesis that the native token of the Solana network could break its current all-time highs before year-end.
Investors Have Poured Over $30M in This Meme Coin Presale
The $SOL token could be heading to a breakout but so is a new meme coin on presale called Wall Street Pepe ($WEPE) that has already raised over $30 million from investors in less than two weeks.
The success of Pepe Unchained ($PEPU) set up $WEPE for a win. This time, the popular Pepe the Frog meme is being characterized as the Wolf of Wall Street – or should we say Crypto Street.
Wall Street Pepe is building an army of retail investors who are willing to disrupt the status quo in the meme coin space by taking power off the hands of whales.
The project aims to build a big community of degens with an insatiable appetite to "stick it to the man" – in this case, hedge fund managers and suits.
$30M raised. Memes run the internet. Wepe runs the memes.
— Wall Street Pepe (@WEPEToken) December 18, 2024
pic.twitter.com/scMZmwEfKv
The presale price increases in just 18 hours. So, if you want to grab $WEPE tokens at its current basement price of $0.000365, you can visit the official website of Wall Street Pepe.
Connect any wallet (i.e. Best Wallet) and convert USDT, ETH, or BNB into $WEPE. You can also use your bank card if you don't own any crypto at the moment or don't want to spend it.
What are you waiting for? The presale period is about to end and such a positive capital raise will likely lay the groundwork for a major listing in the near future.
The post Solana ‘Falling Wedge' Pattern Points to $300 Breakout – Analyst Calls This a Must-Watch Setup appeared first on Cryptonews.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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