After falling below the $121 price mark last week, the Solana has shown a strong rebound. The SOL price is up 19% from the local low. But the current setup of the Solana price suggests the potential for an even stronger upward breakout, similar to that of summer 2021, according to popular crypto analyst Daan de Rover, better known as Crypto Rover.
From the end of July 2021 to the beginning of November 2021, SOL rallied by more than 1,100%. The chart shared by Rover displays Solana’s price action on a weekly timeframe, showcasing the formation of a descending triangle pattern similar to 2021.
A descending triangle in this setting can be considered a continuation pattern, often leading to a breakout to the upside, especially following a prior uptrend. Currently, SOL is trading around $141. The base of the triangle, acting as a support zone, is between approximately $120 and $130. Meanwhile, the descending upper trendline currently caps the price.
Related Reading
If the Solana price breaks above this descending trendline, Rover predicts that Solana could repeat history and explode beyond $800. “SOL will go parabolic soon,” Rover asserted via X.
However, investors need to monitor the $120 support level closely. A sustained move below this could invalidate the bullish scenario, whereas a strong upward push through the triangle’s upper boundary could set the stage for the anticipated rally.
Potential Catalyst: Solana 2.0 Makes Major Progress
A potential catalyst for the breakout comes from the Jump Crypto team. The Solana network is about to get a major infrastructure update with the new Firedancer client which is currently being developed. @CantelopePeel, an engineer at Jump Crypto, shared via X today, “Full Firedancer client built its first accepted block on Solana testnet.”
Full Firedancer client built its first accepted block on Solana testnet. pic.twitter.com/T7FgkbHT8N
— CANTELOPEPEEL (@CantelopePeel) July 10, 2024
He added, “Of course what you are not seeing here is that Firedancer built another 3 blocks after this, got skipped, then detected that it had mismatched against the rest of the cluster, and then summarily shutdown (gracefully, of course).”
Related Reading
The transparency in detailing both successes and hurdles reflects the ongoing complexity to scale the technology. “Fixing that is a tomorrow problem! Still a ton more to do, but hey at least…
Click Here to Read the Full Original Article at NewsBTC…
