Solana price rally stalled after hitting the $150 barrier earlier this week, but analysts remain optimistic that an explosive bull run is on the horizon. The optimism is notably high, considering that one analyst predicts that this Ethereum rival could soon hit $4,500. Despite the analyst’s overly ambitious target, several indicators suggest otherwise.
SOL value today stands at $148, with a nearly 2% decline in 24 hours caused by uncertainty across the broader market.
Analyst Predicts Solana Price Will Reach $4,500
While giving his Solana price prediction, popular analyst Ali Charts noted that the altcoin may be on the verge of breaking out to $4,500. He based his forecast on the formation of a cup and handle pattern on SOL’s weekly price chart.
For this chart pattern to be confirmed, Solana needs to overcome the resistance line on the handle and make a weekly close above it. If a breakout occurs, then traders should anticipate a rally to as high as $4,500.
While Ali Charts did not provide a timeline on when this target could be achieved, several factors suggest that it is unlikely to happen in the near term.
Reasons why Solana Price Rally to $4,500 is Unlikely
One of the reasons why a Solana price rally to $4,500 is unlikely in the near term is the fizzling meme coin frenzy on the SOL blockchain that has caused SOL DEX volumes to plummet from $20 billion last week to $6 billion at press time, per data from deFiLlama. If the Solana meme coin frenzy is dying down, it might trigger a bearish trend.
A Solana price surge to $4,500 in the near term is also a stretch because social volumes have died down. Data from Santiment shows that SOL social volumes hit a peak of 2,579 mid this month, but have since plummeted to 165.
This decline suggests that there is less chatter regarding Solana, which highlights weak retail interest. Additionally, looking at the previous trends, reduced social volumes have always coincided with a suppressed Solana price performance.
Lastly, the funding rate data from Coinglass shows that futures traders are not anticipating a Solana price rally in the short term, let alone one to $4,500. At press time, the funding rate had flipped negative, which is a bearish outlook as traders open short positions to bet on a price decrease.
Solana Short-Term Forecast as SOL Enters Consolidation
After recording a notable uptrend for most of this month, Solana price has entered consolidation, and has been stuck in the range of $145 and $152 for nearly a week. A breakout to the upside will only occur if buyers are willing to scoop more tokens at these prices.
The RSI has crossed above 50, and it is tipping north, highlighting that bullish momentum is beginning to surge. If the RSI continues to rise, traders should anticipate Solana price to make more gains and break out above $152 to aim for the resistance level of $179. However, if the RSI’s uptrend falters and it plunges back below 50, it might spark a bearish breakout from consolidation.
To sum up, a Solana price rally to $4,500 is not realistic in the near term because of the negative funding rate, declining social volumes and plummeting meme coin activity. These factors have led to SOL trading within a consolidation range, as buyers remain hesitant.
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