Market Analyst Predicts Solana Spike to $1,600 Amid Bullish Breakout

Solana (SOL) shows a strong bullish momentum, breaking out from its second ascending triangle, with analysts like Trader Tardigrade predicting a rise to $1,600.

Solana has demonstrated heightened bullish momentum in recent trading activity, breaking out from its second ascending triangle pattern since the latest market low. This technical breakout suggests an imminent continuation of the upward trend, with market analysts like Trader Tardigrade predicting a potential rise to the $1,600 mark.

Macro structure $SOL 🔥#Solana has broken out the 2nd triangle from the recent bottom and is heading to $1000 🚀
Have you heard about #socialfi on #Solana?
Interesting that you can now share images to your friends through blockchain with private messages (wallet👛 to wallet👛)… pic.twitter.com/yoSnLK9dSs

— Trader Tardigrade (@TATrader_Alan) May 23, 2024

Solana Analysis and Implications

According to an accompanying chart, Solana’s first ascending triangle pattern formed between May and August 2021, culminating in a breakout in August and leading to a sharp price incline. 

Solana’s price surged dramatically following this breakout, peaking in November 2021. After reaching its peak, the price began to decline, entering a corrective phase until early 2022. 

This decline formed the second ascending triangle pattern from May to August 2022. Like the first pattern, this second triangle indicated intense buying pressure, leading to another breakout. 

Now, in the current market scenario, Solana is following a similar pattern. In this cycle, the first ascending triangle came up at the start of 2023, with a breakout occuring toward the end of the year. A breakout from this first triangle resulted in a surge before an observable retracement.

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Meanwhile, the second ascending triangle of this cycle started in April this year amid the current market uncertainties. Data from the analyst’s chart shows that Solana recently broke out this ascending triangle, with projections of another price uptrend. 

A $1,600 Price Target

This breakout has reignited optimism among traders and investors, with the price rallying sharply from its recent low. Historical performance following similar breakouts suggests strong potential for further upward movement. Consequently, market analyst Tardigrade forecasts that Solana could exceed the $1,000 mark and hit $1,600 by year-end.

Meanwhile, prominent figures in the finance scene suggest that Solana could be the next crypto asset to secure a spot exchange-traded fund (ETF) following Ethereum. 

However, The Crypto Basic cites Bloomberg ETF analyst James Seyffart, who contends that the earliest a Solana spot ETF could come up is 2026. Despite this, Seyffart notes that the recently passed pro-crypto bill could potentially expedite this timeline.