Solana’s Hourly Chart Unveils Bullish Flag Formation, Anticipates an Impressive Rally Towards $163

Solana's Hourly Chart Unveils Bullish Flag Formation, Anticipates an Impressive Rally Towards $163

Solana’s Recent Price Movement

Solana (SOL), currently the fifth-largest cryptocurrency by market capitalization, has recently undergone a significant surge following a correction from its 20-month high of $125 on December 25.

After a brief dip to $85 on Monday, January 8, SOL managed to reclaim the $100 level, showcasing a 6.4% surge in the past 24 hours.

Bull Flag Formation on Solana’s Hourly Chart

Technical analysis by Ali Martinez reveals a potential bullish continuation pattern on Solana’s 1-hour chart known as a bull flag. This pattern suggests the likelihood of further price gains beyond the previous high.

In a bull flag formation, a consolidation period follows a strong upward move. In this scenario, the dip to $85 can be considered the consolidation phase, indicating the potential for another significant upward move in SOL’s price.

To confirm the validity of the bull flag pattern, SOL needs to achieve a decisive close above the $110 resistance level. Such a breakthrough could catalyze upward momentum, setting the stage for potential new highs.

If the bull flag pattern holds, Ali Martinez anticipates SOL aiming for an ambitious target of $163. However, SOL faces multiple resistance levels, including $110, $120, and the previous 20-month high of $125.

Additional resistance is expected at $132 and $137, which were significant price points during Solana’s price decrease in April 2022. The final thresholds for potential bearish resistance are set at $151 and $154 before reaching the $163 target.

Solana’s Ecosystem Growth

Despite recent price volatility, Token Terminal data reveals consistent growth in Solana’s blockchain ecosystem.

Solana’s circulating market cap has surged impressively to $43.54 billion, representing a substantial 20.08% increase in value over the last 30 days.

The fully diluted market cap has also experienced growth, reaching $57.13 billion, reflecting an 18.82% increase and indicating strong investor interest in Solana’s potential for future growth.

Over the past 30 days, Solana’s revenue has surged by 217.18% to reach $5.68 million. On an annual basis, the revenue has reached an impressive $69.12 million, exhibiting a remarkable surge of 142.15%.

Solana’s fees have significantly increased over the past 30 days, rising by 217.18% to $11.36 million. On an annualized basis, the fees amount to $138.24 million, marking substantial growth and reflecting the network’s increasing usage and transactional activity.