Solana Price News: 4 Buy Signals Support Explosive Move to $280

Solana (SOL) seems ready to follow Bitcoin’s footsteps to retest and possibly break its all-time high as positive momentum seems to be gaining traction.

Five different buy signals have emerged in the daily chart and all of them have already been confirmed by the token’s latest bullish breakouts.

Multiple macro tailwinds including the passing of the Genius Act plus the launch of the first Solana exchange-traded fund (ETF) recently in the United States have contributed to propel the price of this token to these heights.

Solana Meme Coins Explode on ETF Hopes

Trading volumes have skyrocketed lately as a result. In the past 24 hours, nearly $9 billion worth of SOL have exchanged hands, resulting in a 70% jump.

Solana DEX Trading Volumes – Source: DeFi Llama

Solana DEX volumes have also increased by 22% in the past week as meme coin trading activity has spiked as a result of the latest wave of positive momentum that tokens like Pudgy Penguins (PENGU), Bonk (BONK), and SPX6900 (SPX) have been experiencing.

These strong moves have been caused primarily by the acknowledgment of Canary Capital’s application to list a PENGU-linked exchange-traded fund (ETF) in the U.S.

In the past 30 days, PENGU has seen its price jump by four times while BONK has delivered gains of 172%.

Other tokens like Fartcoin (FARTCOIN) and SPX6900 (SPX) have also booked big gains of more than 70% each during this period.

Four Buy Signals Support Retest Of SOL’s All-Time High

This token’s daily chart has sent multiple buy signals that could result in a huge move to $280 over the next few weeks following the sign of the Genius Act.

This piece of legislation marks the beginning of a new era in the United States that could see hundreds of decentralized applications being launched to facilitate crypto payments.

Moreover, the passing of the Clarity Act, the first comprehensive regulatory framework for cryptos in the United States, could propel the price of multiple tokens as institutional demand for these assets now that they have been fully legalized could skyrocket.

SOL/USD Daily Price Chart (Binance) – Source: TradingView

Here’s a breakdown of the five buy signals that have popped up in Solana’s daily chart:

1. Golden Cross: The 9-day and 21-day exponential moving averages (EMAs) have moved above the 200-day EMA. This is a powerful buy signal that tends to anticipate big explosive moves that typically unfold within the next one to three months.
2. Descending Price Channel Breakout: SOL broke out of a descending price channel that had been forming since the $190 level was touched in late May. This breakout was confirmed by strong volumes and a golden cross between the 9-day and 21-day EMA.
3. Confirmed Cup and Handle Pattern: Today’s move above $190 has confirmed a cup-and-handle pattern that has been forming for months. Based on the height of the cup, which is typically used as a reference to predict the magnitude of the move, SOL could rise by 46%, resulting in a mid-term target of $277.
4. Key Resistance Breakout: The $180 level has been a key resistance for SOL over the past four months. Today’s breakout confirms that selling pressure at this level has now subsided. Former sellers will now turn to buyers once the price retests this area to cover their short exposure. A drop to this level could trigger the beginning of SOL’s next leg up.

Combined with the macro tailwinds mentioned earlier, everything points to an upcoming explosive move for SOL. Half of these patterns have been confirmed. However, the optimal entry for a long position at this point would be the $185 level if the cup and handle’s neckline is retested.