Solana price is testing an important technical level at $100 as the newly formed bull flag pattern could indicate that there is a possibility of continuation to the $140 mark. This occurs due to the breakdown of the symmetrical triangle and the formation of the current bullish pattern.
At the time of writing, SOL is trading at $99.91, with 24-hour trading volume of approximately $5.06 billion and a market capitalization of $58.44 billion. The token has declined 1.27% over the last 24 hours, showing that buyers have yet to turn the latest technical setup into a sustained upward move.
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Solana Price Forms Bull Flag After Triangle Breakout
On September 11, Trader Tardigrade, an analyst for the crypto market, observed a sequence of bullish patterns emerging in Solana’s charts. From the observation, it was noted that Solana first emerged from the symmetrical triangle to create a bull flag.
It should be noted that the symmetrical triangle pattern usually occurs when there are fluctuations in the market between lower highs and higher lows. The breakout of the pattern is usually an indicator that the prevailing trend is resuming its position.
The most important level for this setup is $140. The expected target is based on the calculated move from the recent pattern. It should be noted that just because a technical target has been identified, it does not mean that SOL will achieve this level. Price needs to breach the upper trendline of the flag pattern and continue buying.
In the event that this happens, $140 may become the new target. Failure to breach the upper boundary, however, may force SOL lower towards its support levels.
SOL Holds Above Major Moving Averages
The overall technical situation looks positive for Solana, given that the asset trades above several important exponential moving averages.
Currently, SOL is trading around $99.27, considering the technical information provided. This price is above the 20-day EMA of $99.13, the 50-day EMA of $91.12, the 100-day EMA of $86.58, and the 200-day EMA of $91.47.
It is a great sign for the bulls to stay above these EMAs. Moreover, the fact that the 20-day EMA is almost at the level of $100 makes this range quite important in the short-term period.
Another important aspect of the pattern formation comes from Solana’s Relative Strength Index. The RSI is currently at 55.30, placing it above the neutral 50 mark but well below the conventional overbought area.
It means that SOL does not have an extreme overbought condition yet, although its positive momentum continues. The average value of the RSI is at 63.89, which shows that the momentum is not as strong as it was before.
Breaking the 60 mark to the upside would be another sign in favor of bulls. A fall below 50 would mean that the momentum is waning and that the bull flag would become less reliable.
Why the $140 Solana Target Matters
This target is key as it will represent a major move away from the present price level. In order for SOL to get to this level, the token will need to break through resistance formed during consolidation while maintaining high demand following the breakout.
In addition to this, the formation is key as Solana is still one of the biggest crypto assets by market cap. Any significant move in SOL may have implications for sentiment in other big-cap altcoins, especially if it comes with increased volumes.
However, it is key for traders not to view chart formations as certain events. Bear flags will be unsuccessful if the price falls below the bottom trendline instead of breaking through resistance.
What Happens Next for Solana Price?
The key question at hand is whether Solana is able to get back and sustain itself above the $100 level, while being above its 20-day EMA.
The successful breakout of the bull flag may bring SOL closer to the $140 target, with confirmation coming from momentum indicators. In case Solana price fails to stay above its short-term averages and the RSI falls below 50, a possible move towards the $91-$92 level will come into play.
Technically, the situation remains cautiously bullish but still requires confirmation. The combination of the prior symmetrical triangle breakout, current bull flag, support from moving averages, and RSI above 50 gives SOL a chance for growth.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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