After a relatively solid performance in January — which saw the altcoin reach $290, SOL started February with a deep correction beneath the $200 level. However, the Solana price could be on its way to a new all-time high, as it continues to trade within an ascending channel on a larger timeframe.
Here’s How SOL Price Could Climb To New All-Time High
In a February 8 post on the X platform, popular crypto analyst Ali Martinez has painted a fresh bullish outlook for the Solana price over the next few weeks. According to the trader, the price of SOL could experience a significant rally beyond its current record high and towards $387.
The reasoning behind this bullish forecast is the formation of an ascending channel pattern on the Solana chart on the daily timeframe. An ascending channel is a technical analysis pattern composed of two major (upward-sloping) trendlines; the upper line connecting the swing highs and the lower line connecting the swing lows.
Typically, the asset’s price remains within the ascending channel; with the upper boundary line often serving as a resistance area and the lower trendline serving as a support zone. Investors can trade as price swings between the pattern’s support and resistance levels or enter a position following a breakout or breakdown.
The ascending channel pattern suggests the persistence of an upward price trend. However, a breakout of this channel can be used to identify a trend reversal or continuation. If a breakout occurs beneath the lower trendline, it suggests that there might be a shift from an upward trend to a downtrend. A breakout above the upper boundary line, on the other hand, signals the continuation of the uptrend.
As shown in the chart above, the Solana price is testing a key support area at the lower boundary of this ascending channel. Martinez highlighted that if this support level holds strong could strengthen SOL’s case for a price rebound.
According to the crypto analyst, this support level of around $195 could act as a springboard for the Solana price rally to a new all-time high. Martinez put forward in his analysis a target of $387, which would represent an over 91% rally from the current price point.
Solana Price At A Glance
As of this writing, the price of SOL has recovered above the $200 mark, reflecting a more than 4% increase in the past 24 hours.
