Briefly –
- Solana has recorded massive rallies this year, surging to $216 from $1 in around eight months.
- The altcoin has possibilities of extending its run-up in 2022 with the emerging bullish signals.
- Meanwhile, a new rally might propel SOL up by almost 713%.
Indeed, Solana has witnessed an extraordinary performance in 2021 and might extend its rally in 2022. However, why this optimism? Let us dig dip.
SOL Price and Q4 Cryptocurrency Markets
Solana has retained bullish sentiments since it arrived in the capital markets. The alternative coin has seen support and investing by big names in the financial space, including CMS Holdings and FTX Alameda Research.
Also, famous investors such as Sino Capital and Multicoin Capital have $SOL in their portfolios. Remember, these large investors supported the crypto project with the “ETH-Killer” narrative, contributing to exponential profits in the last eight months.
Unlike other ETH killers that failed to challenge Ethereum in facets like market share, Solana has been critical in decentralized finance and continues to sway users from the Ethereum network.
Although SOL’s support makes the coin attractive for investors, it might not be a complete reason. Another reason is the incoming bullish rally that has a higher probability of triggering a massive Solana rally. However, this cycle appears intriguing since it happens in the year’s last quarter.
History shows that BTC usually sees a bullish run in Q4. Meanwhile, altcoins capitalize on this, multiplying their values. Analysts believe that Solana will receive support from increased buying momentum by institutions and retailers during 2021 Q4.
Technicals Support SOL
Meanwhile, weekly and daily charts suggest an interesting bullish picture for $SOL. The daily timeframe indicates that Solana surged 713% from 21 July to 8 September, creating a flag pole, an element that confirms an upcoming bullish flag. This remarkable surge encountered a consolidation that formed three higher lows and lower highs.
The rally from 21 July to 20 October and the followed consolidation resulted in a bullish pennant. This technical pattern predicts a 713% surge to $1,336. The altcoin broker the pennant’s top trend-line on 20 October and increased by 21% to its current level.
Going forward, market players can wait for SOL to surge 713% towards its theoretical aim at $1,336 or the more conservative target at $721. If the alt maintains its lucrative outlook, it might be the perfect time to invest in SOL.
Though things appear appealing for SOL, breaching the triangle’s bottom trend-line at $143 will cancel the bullish pennant. However, that doesn’t cancel SOL’s current bullishness. However, such a move might mean a downtrend, pushing $SOL towards $130.