Sam, an analyst from My Financial Friend predicts Solana (SOL) is about to explode based on its current outlook. 

He pointed out technical analysis aspects that make SOL appealing, such as previous resistance levels now serving as support. Notably, he cited the Dollar Cost Average (DCA) signal from the HG algo as a key indicator for a favorable buying opportunity.

Further into the analysis, Sam also discussed the Total Value Locked (TVL) in Solana. He explained that although SOL’s TVL in U.S. dollars had decreased due to recent price drops, the amount of SOL locked up has increased since the year began, indicating a strengthening trust and commitment among investors. This comes as Solana also takes the lead in the NFT sector.

Further into the analysis, Sam elaborated on his buying strategy at different price points. He considered purchasing additional SOL at $115 and $122, despite the risk of liquidation if the price were to dip below $100. Confident in the token’s potential, he believed that the current price of around $150 offered a good entry point for buyers, who might see it as a bargain during a future bull market. This comes as more analysts predict Solana could soon hit new highs.

Solana Price Review: How Is SOL Looking Today?

Solana charts show that it also forms a rising wedge pattern, pointing towards a price breakdown. Looking at indicators, we notice that the Woodies CCI (Commodity Channel Index) is shown to have a value of around 120. Values above +100 indicate that the price is well above the historical average, which can be a sign of strength but also suggests that the asset may be overbought.

4-hour SOL/USD Chart | Source: TradingView

On the other hand, the ADX (Average Directional Index) is relatively low at 17.19, indicating that the current trend is weak or that the market is range-bound. Based on stats from CoinMarketCap, Solana was priced at $154 as of 2:55 p.m. UTC, a 3.11% increase over the previous day. The trading volume has increased by 4.52%, suggesting higher market activity, which might respond to recent price movements or indicate growing interest in SOL.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.