Although Solana (SOL) has faced short-term bearish sentiment, struggling to establish its price above the $200 resistance, a trading expert suggests the cryptocurrency’s long-term technical setup points to the possibility of reaching $300 or even $400 in the coming months.
Alan Santana stated that SOL’s technical setup “is screaming bullish,” noting that the asset has been trading within a consolidation range for 300 days, which he considers a strong foundation for the next major rally, according to his TradingView post on January 13.
Santana observed that Solana exhibited a bullish bias during this consolidation, with price action clustering near resistance levels.
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Additionally, SOL has maintained its price above the 200-day moving average (MA), which aligns with the 0.618 Fibonacci retracement level, reinforcing its role as a critical support zone.
Key SOL price targets to watch
Santana summed up by stating that investors should not be surprised if the decentralized finance (DeFi) asset rallies further, as a decisive breakout above the upper boundary of the long-standing sideways channel has already occurred, signalling an upward trajectory. The analyst projects Solana could hit $300 in the near term and potentially $400 by May.
“No need to scream, no need to cry no need to be surprised. There is no need to be surprised if Solana starts trading above $300 in a matter of months. No surprises is Solana goes above $400 before or near to May. No surprises here, all growth is welcomed,” the expert said.
This optimistic outlook comes as Solana’s bulls and bears tussle for control. To this end, an analysis by RLinda on January 14 observed that Solana was testing a critical downtrend boundary near $185 amid a corrective phase.
Bulls are aggressively defending the $178 to $180 support zone to prevent further declines, with $203 and $218 identified as key resistance levels.
A breakout above $203 could ignite bullish momentum, while a drop below $178 might lead to further losses toward $170.
The possibility of a downward trajectory was also echoed by prominent cryptocurrency analyst Ali Martinez who emphasized the importance of the $180 support zone.
In his January 9 analysis, Martinez cautioned that a breakdown below $180 could result in a downward push toward $150 or even $130.
Solana price analysis
As of press time, Solana was trading at $187, gaining 6% in the last 24 hours. However, on the weekly chart, SOL remains weighed down by overall market sentiment, having plunged over 12% in the period.
Solana’s trajectory remains uncertain and will likely be dictated by broader cryptocurrency market trends. With moderate volatility of 6.32%, price fluctuations are expected, though nothing extreme.
Solana’s 50-day simple moving average (SMA) at $211.95 is above its current price, indicating a short-term downward trend. However, its 200-day SMA at $172.22 remains below, indicating a longer-term upward trajectory.
The 14-day Relative Strength Index (RSI) sits at 41.71, placing SOL in a neutral position. This suggests potential movement in either direction as the market struggles to sustain recent gains.
Overall, as the cryptocurrency market remains on the edge, SOL’s ability to rally now shifts to the possible impact of Donald Trump inauguration on January 20, whose election win is considered bullish for digital assets.
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