Solana, a trending cryptocurrency, has caught analysts’ attention with its technical and fundamental indicators suggesting a significant upward movement by March. Currently trading at $98.29, expectations are high for the popular altcoin project.
On January 18th, Solana’s price tested the upper trend line of a formation resembling a bullish flag pattern, a bullish continuation formation that indicates potential for a breakout. If Solana surpasses the flag’s upper trend line, it could see an approximate 80% increase to $194 by March.
However, a pullback from the upper trend line could send Solana’s price down towards the lower trend line around $80. Long-term support near the 50-day EMA at $87 could result in sideways price action, while staying within the flag range maintains the likelihood of a breakout.
The approval of spot Bitcoin ETF products on January 11th has fueled hopes for other cryptocurrencies, including Solana, to potentially receive a spot ETF. Franklin Templeton’s praise for the blockchain network after the hype in DeFi, infrastructure, NFT market, and memecoin projects has intensified Solana ETF speculations, which could lead to a price increase similar to Bitcoin’s pre-ETF approval rally.
CME’s predictions for a 25 basis point rate cut by March 2024 suggest a weakening US dollar, which could benefit cryptocurrencies like Solana that are typically priced against the dollar. Additionally, the technical structure of the US Dollar Index (DXY) indicates a potential sell-off scenario, with a downward target between 101.50 and 102.25, further increasing the likelihood of a significant Solana rally by March.