Over the past 24 hours, the Solana price has experienced a notable decline of 3.69% amid a wider market downturn.
Analysts, however, point to a hidden bullish divergence pattern as a potential indicator of an impending breakout.
Today’s downward movement pushes Solana further into its recent slump, down 8.02% since last Friday, making it one of the worst performers compared to other notable altcoins.
With this downturn, trader interest appears to have waned. The altcoin’s trading volume has dipped by 5.21% to $1.945 billion over the past 24 hours.
Analysts Point to Breakpoint Catalyst – Can Solana Reach $233?
In a September 4th X post, renowned crypto analyst Javon Marks maintained a bullish outlook on Solana, with a long-standing target of $233.8 for the asset.
This target is supported by significant developments on the Solana price chart, which has recently confirmed and sustained a hidden bullish divergence pattern ongoing since mid-2023.
“As the breakout bringing it into play continues to hold, and with bullish signals coming in, a nearly +72% climb to finish that process of meeting it could be in development,” Marks stated.
This bullish sentiment has been echoed by other analysts, who cite the upcoming September 16th Breakpoint event, showcasing the Solana ecosystem’s innovation and development, as a potential catalyst.
In a September 4th X post, popular trader Marty Party echoed a tweet by another analyst named Sai, noting the event’s historical significance to price action, with an average upside of 62%.
This Breakpoint event has historically attracted attention from investors, contributing to the pre-event price rallies.
Notably, Marks further suggested that there are grounds that Solana could go even further, citing a potential move towards $457 if the $233.8 target is broken, representing an additional 93% increase.
Solana Price Analysis – The Key Barriers to a Surge
A closer look at the Solana price chart reveals some immediate obstacles to a potential surge.
SOL / USDT 1D Chart, consolidation range. Source: Binance.Since its surge in the earlier part of the year, the Solana price has remained bound in consolidation, ranging within a wide band between $185 and $128.
However, more recently, it has adopted a much narrower channel, finding new resistance around $163.50 amidst strong bearish sentiment. This decreased volatility demonstrates a lack of confidence in the asset’s potential to rise.
Meanwhile, momentum indicators offer a glimmer of hope, demonstrating resilience. The Relative Strength Index (RSI) remains subdued, hovering around 40. While this still exhibits a bearish bias, it has the strength to stay out of oversold territory.
Buying pressure is weak, unable to push the RSI out of this zone, reflecting cautious sentiment among traders, which could hinder Solana’s ability to gain upward momentum unless stronger demand materializes.
Likewise, Solana’s Chaikin Money Flow (CMF) is struggling to break out of negative territory, currently sitting at -0.02. This indicates persistent selling pressure, making any potential price rally difficult.
Therefore, the upcoming Breakpoint Event could be the catalyst Solana needs to overcome these challenges.
In the near term, traders should watch for recovery of support at the 200EMA as a sign of continued consolidation, providing stability and a stronger foundation for an upward move towards a breakout.
This Solana Based Low Cap Gem Could Rally Twice As Hard
Although a $233 Solana is certainly an appealing prospect, its ecosystem is host to emerging opportunities with higher upside potential.
The most prominent of which is a new Solana GameFi token Mega Dice ($DICE) the native token to the Mega Dice platform – a top brand in the crypto casino domain, boasting over 10,000 active players monthly and exceeding $50 million in monthly wagering.
The platform offers utilities such as casino cashback, airdrop rewards, and NFT perks for holders. Something that may be credited to its instant success, raising over $1.7 million in its presale so far.
The team looks to the success of Rollbit ($RLB) as a baseline. Given its superior feature set, $DICE buyers are confident that Rollbit’s peak 8,000% return for its early investors is more than achievable.
As the GameFi industry surges forward, crypto gambling emerges as one of its fastest-growing and most innovative subsectors, boasting an estimated market value of $250 million in 2023.
Join the Mega Dice community on X and Telegram to stay up to date on the latest announcements.
BUY $DICE NOW
The post Solana Price Poised for Massive Breakout – $233 in Sight as Breakpoint Nears appeared first on Cryptonews.
