The fate of the Solana (SOL) price in the next few weeks depends on a critical level that it is testing right now. A successful breakout above this key barrier could trigger a 40% surge in the SOL market. However, a failure to overcome this hurdle could lead to a 21% drop in the SOL value.
SOL Price Trends and Patterns
Using Fibonacci retracements on the 1-day chart, we can see that the SOL price is facing a critical moment for the next weeks. SOL’s price was $19.19 when this article was written, which is a bit lower than the 38.2% Fibonacci retracement level. This level at $19.72 has been a tough resistance for the SOL bulls so far.
If they can overcome it, the price level above $21, where SOL was trading before the SEC classified the Solana token, would be possible again. A little higher, the 200-day EMA is waiting for the SOL price at $22.05 – a sign of bullishness that SOL investors have not been able to cross since April 2022.
The next major hurdle for SOL bulls is the 200-day EMA in this optimistic scenario. If they can break above this level, they could aim for the 61.8% Fibonacci retracement level at $27.00, which is also the highest point of the year so far, implying a 40% surge. However, this level could also trigger a temporary halt in the rally.
On the other hand, SOL might struggle to overcome the 38.2% Fibonacci retracement level in a pessimistic scenario. This could lead to a decline towards $15.30, which would mean a 21% drop in price.
One of the reasons behind Solana’s price rally is its solid fundamentals. On June 30, last Friday, Solana achieved a historic milestone by surpassing Ethereum in NFT trading volume in 24 hours. The volume of Solana NFTs soared to $25.5 million, an increase of more than 1,900% from the previous day (while Ethereum’s volume rose by 28%, reaching $24.6 million).
