- Solana is in a consolidation phase, trading between $170 to $210, offering potential for long-term growth despite short-term volatility.
- The key support level at $143 remains crucial for Solana’s stability, with analysts expecting moderate price swings in the coming weeks.
- Solana’s ongoing price correction suggests short-term stagnation, but analysts foresee a potential bull market rally by 2025.
Solana (SOL) is in the middle of a consolidation phase right now, with the price ranging amid a particular set of values. In an X post on Friday, Alan Santana highlighted that the cryptocurrency is going through a normal cyclical pattern observed in market-cap assets and may open the door to a bull market in the future. However, the recent market action appears somewhat choppy, the medium term outlook for Solana remains favorable in the coming months.
Solana’s Accumulation Zone
The cryptocurrency has recently shifted to its previous consolidation range, which according to Santana is the accumulation zone. This is where the investors may want to enter positions with a view of making profits in the approaching market recovery. The main level in this range is $170 which was touched and briefly broken through before prices rebounded a little. Solana has since been trading within the ranging channel of $170 to $210 with occasional price volatility that is common with the asset.
The levels of support that have been seen around $143 are critical for the current structure of the market, as this is the key level of the current consolidation phase. These levels are viewed as stable and firm as the market has been unstable in the last one month. Despite fluctuations which have taken place at different levels, these support levels are being considered by analysts as significant in the near future moves. Although, further declines towards the lower levels such as $115 are not probable but they cannot be fully dismissed, which extends some ambiguity to the short term direction of Solana.
This current price correction on SOL seen since late November can be attributed to an ABC pattern. This pattern has been on-going for the past one month and so may indicate that price movement in the market may be stagnant for sometime. At the time of writing, SOL is at $193.30 and has risen by 2.14% in the last 24 hours.
Source: TradingView
Bull Market Expectations
For most crypto investors, the most important question is whether Solana will follow other cryptocurrencies and fall into a bear market or if it will keep on rising. Although short-term oscillations may indicate the formation of a temporary base, most analysts expect further growth of SOL in the future. A bull market rally could be around the corner and forecasts suggest that this change could be expected next year or at the latest by 2025. But the way to this rally will not be fast, and there will be 1-2 more month of the consolidation and then the new wave of price action will begin.
For people with a longer time frame, this is a good time to build positions in SOL during this period of consolidation before the bull market returns. Clients should remain cautious and should prepare for new developments, based on the important levels of the price and other indicators in the following weeks.