Solana’s [SOL] recently broke out of an ascending triangle pattern, triggering a rapid uptrend. This breakout led Solana to navigate through crucial liquidity areas which had been identified earlier.
Upon surpassing $182, SOL is now in close proximity to higher liquidity zones near $213, followed by $230, each of which may act as either resistance or support levels.
These liquidity zones are regions where substantial trading activities take place, shaping future price movements.
If Solana manages to breach these levels, it may encounter selling pressure at resistance points or find substantial buying backing if it retraces to lower zones.
This scenario paves the way for potential further upswings if SOL consolidates successfully above these critical levels, maintaining its upwards trajectory.
This pattern indicates the possibility of SOL upholding its momentum, potentially exceeding $230 if market conditions remain favorable.
Market Performance and Forecast
Following Solana’s breach above $200, it validated a bullish continuation from its earlier consolidation phase below this mark, as analyzed in a previous CryptoCrypto report.
This breakout harmonizes with the formation of an ascending triangle pattern, implying accumulation and hinting at further upward moves.
Noteworthy is SOL touching a peak of $208.69, consolidating its gains and setting the stage for further advances.
The next significant resistance is approximately $230, based on past highs in the consolidation area.
Should the bullish momentum persist, Solana might confront these levels, potentially fueling a rally that could extend into the middle of the year.
This underscores the potency and continuation of the ongoing bullish trend, with $182 acting as a crucial support and $230 as the imminent objective.
SOL Exchange-Traded Fund, Market Capitalization, and Total Value Locked
According to Polymarket’s forecast, there is a 77% likelihood of a Solana ETF approval by 2025. This optimistic sentiment regarding regulatory approval could have a positive impact on Solana’s price.
Historically, anticipation of an ETF, such as those for Bitcoin [BTC] and Ethereum [ETH], has triggered price surges due to increased acceptance and broader investment inflows.
Despite Matthew Sigel of VanEck suggesting that the odds could be undervalued, hinting at an even greater chance for approval, the market sentiment has already factored in a substantial probability.
If approved, Solana could witness a significant surge in value, attracting both individual and institutional investors seeking to capitalize on the ETF’s market debut.
The Solana network has reclaimed a market cap exceeding $100 billion, showcasing resilience amidst volatile market conditions, underscoring robust support and utility within the ecosystem.
Simultaneously, the Total Value Locked (TVL) at $9 billion signals increased adoption and utilization of Solana’s capabilities, hinting at further growth and incorporation into DeFi applications.
This could potentially usher in higher valuation thresholds for Solana, positively influencing its market standing.