Solana Price Eyes Breakout to $187, Here's Why

Solana Price Prediction: Will SOL Breakout to $187

Solana price indicated new growth after several weeks of trading in a descending parallel channel. Technical indicators such as Fibonacci retracement levels and long-term Elliott Wave analysis implied that the cryptocurrency is reaching a crucial point. 

Trading at a current level of about $175, analysts are considering whether SOL price will maintain the breakout and hit $187 or go back to the previous bearish trend.

Solana Price Breakout Attempt From Descending Channel 

Since late July, SOL price has been following a consistent downward trend within a clear descending parallel channel. The upper level acted as resistance, while the lower level provided steady support. 

Superposition of Fibonacci retracement has provided traders with the points of potential reversal and breakout targets. According to analyst Ali Martinez, SOL price breached to the median line of the channel and is trying to break through the upper barrier..

SOLUSD 1-Hr Chart | Source: X

Also, the analyst noted that the $175 area marks a key Fibonacci retracement level, making it a critical decision point. A sustained close above this level, with higher trading volume, would support the case for further upside.

Solana Price Targets $187 As Next Resistance Level

Moreover, as mentioned earlier, the next key bullish target is near the 0.382 Fibonacci retracement level, around the $187 price range. This target also coincided with a previous consolidation waves in late-July which increased its significance as a level of resistance. 

This price movement would provide significant relief from the lows around $156 seen earlier in August. But it may also help to eliminate breakouts that are false should SOL price lose momentum above the current range.

In this scenario, Solana price may quickly dip back to support zones between $168 and $165. The range is supported by both the channel's median line and lower Fibonacci points. It is also an indicator for short-term traders, reflecting the strength of the breakout attempt.

Elliott Wave Structure Points To Expansive Cycle

Additionally, SOL price Elliott Wave analysis on the 4-day chart revealed long-term market prospects. The wave count shows the asset is in the middle of a multi-year impulsive structure. This structure is marked by primary waves (I) through (V), intermediate waves, and minor wave levels.

SOLUSD 4-Day Chart | Source: X

The market structure suggested that wave (i) of a larger degree may be nearing completion. More so, wave (ii) could be ending, or it might still be ongoing. According to the analyst, potential retracement Fibonacci levels were at $74.04, $51.85, and $17.41. These levels act as support zones before a possible upward trend. 

While Solana price bullish outlook remains, the market could experience significant pullbacks within the broader trend.

Besides Solana price breakout and $187 forecast, whale actions have raised concern in recent days as 1.53 million SOL went to meme coin Fartcoin. Also, derivative weakness and net outflows predicted decreased trader confidence which further stressed the price.

The top altcoin traded at $175, an increase of 4% in the last 24 hours. This upward trend was followed by a surge in trading volume, which increased by 47%. Solana performance has captured attention due to high buy interest as the market cap hit $ 94.83 billion.