Solana Price Prediction: Reversion to the Mean Could Push SOL to $120

Solana (SOL) has booked a 7% gain in the past 7 days after breaking the $90 barrier, as traders’ interest in cryptocurrencies seems to be recovering.

Trading volumes have retreated a bit, but are still quite high at 9% of the token’s circulating market cap.

On Friday, we shared an interesting trading opportunity that would have yielded a 4.5x return, and we nailed it.

A buy signal right before a break above the $88 level set the stage for a strong move toward a key resistance level at $97.

The game plan in this case involved an entry at $88 following an expected retest, with a stop price set $2 below that mark. This trade was a home run, but Solana might still have some more upside ahead as long as the $90 level holds.

Network Activity Remains High, Just 8% Off Recent Records

Data from SoSoValue shows that exchange-traded funds (ETFs) linked to this altcoin took in $16 million in the past four days, while network usage continued to be high last week.

The Solana blockchain processed 880 million transactions according to data from Artemis, a level that is just 8% below its recent record from early February.

These are all bullish signals that indicate rising demand for Solana-based applications, which should translate into higher appetite for its native asset.

Heading to the daily chart, see that this breakout above $90 has effectively invalidated a potentially bearish bull flag pattern.

This could probably put SOL on track to retest its 200-day exponential moving average (EMA) from below as part of a normal reversion to the mean move. This technical indicator currently stands, but might drop to $120 based on its current trajectory.

The Relative Strength Index (RSI) in this higher time frame currently sits at 60, meaning that bullish momentum is increasingly rising. We might expect a retest of the $90 level before the uptrend continues.

Such a move would open up another interesting trading opportunity, as SOL’s rise to $120 means a 26% upside potential.

Another 4x Trade On The Table If SOL Drops to $90

Moving down to the 4-hour chart, we can see that we got a buy signal right at the breakout level at $90. This means strong institutional and whale participation as volumes shot up above the average.

Our system tracks these “decisional” candles, and they gain more relevance when they pop up at key levels.

A drop to $90 could provide an attractive entry for another 4x trade, setting the $100 psychological threshold as Solana’s next target and placing the stop-loss right below the $88.50 level.

This pullback seems likely as the RSI has already hit overbought, while the price has also hit a trend line resistance. That said, if the price action breaks below the $85 threshold, that would invalidate the entire setup, and would turn this whole move into a “fakeout”.