Analyst Jamie Coutts forecasts a potential price surge for Solana (SOL) based on recent market patterns. In a recent update on social media, he pointed out that SOL has been forming a significant triangular pattern over the last six months, suggesting that a breakout could result in considerable price movement.
What Does Technical Analysis Reveal?
Coutts highlighted that breaking through the upper limits of this triangular formation could lead to a substantial upward price shift for SOL. The cryptocurrency has shown signs of consolidation against both USD and Bitcoin (BTC), indicating positive trends in on-chain metrics which could signal a price increase.
Are On-Chain Metrics Favorable?
Over the past six months, there has been a rise in active addresses and total value locked (TVL) for SOL. Despite this, Coutts noted a general decline in on-chain usage metrics, which may hinder revenue growth due to Solana’s unique blockchain dynamics.
Key insights from Coutts include:
- Potential price target for SOL could reach between $210 and $220.
- Current trading price of SOL is approximately $165.
- Solana could trigger an altcoin season if it surpasses $160 alongside Bitcoin exceeding $70,000.
The overall sentiment indicates that Solana poses a promising opportunity for traders, as highlighted by experts like Raoul Pal and Coutts, given its favorable technical indicators and solid on-chain data.