Seasoned analyst Ali Martinez has sparked optimism in the Solana (SOL) community with his recent analysis predicting a bullish price surge. Martinez, who actively shares insights on X (formerly Twitter), identified a “W” pattern on Solana’s chart, a technical indicator often associated with bullish reversals.
The “W” pattern, also known as a double bottom, suggests a potential price swing towards a target of $174. According to Martinez, the first bottom formed around $122 on June 24th, followed by a peak in early July at $155. The second bottom emerged around July 5th, with the price recently breaking above the resistance level formed by the peak between the two bottoms.
Liquidation Squeeze on the Horizon?
While predicting a surge, Martinez also highlighted a potential scenario for significant short squeezes if the price reaches $176. His analysis points to a heatmap revealing a concentrated $2.98 billion short position that would be forced to liquidate at this level.
A short squeeze occurs when the price of an asset rises sharply, forcing short sellers who borrowed and sold the asset in anticipation of a price decline to buy it back to cover their positions. This sudden buying pressure can further propel the price upwards. As per data from July 3rd, the liquidation leverage at a price of $175.989 was estimated to be around $2.98 billion.
Echoing Optimism: Raoul Pal’s $1200 Bull Case
Martinez’s bullish outlook finds support in previous analysis by Raoul Pal, CEO of Real Vision Group. Pal has a significantly higher long-term price target for Solana, envisioning it to reach between $800 and $1,200 during a complete market bubble cycle, with the potential to even surpass $2,000. In a shorter market cycle, he estimates the price could reach around $750.
Pal’s confidence in Solana’s future stems partly from its new validator, Fire Dancer, boasting the capability of processing one million transactions per second. This enhanced scalability positions Solana as a strong contender in the burgeoning blockchain space.
At the time of writing, Solana is trading at $156, reflecting a 2.61% increase in the last 24 hours and an 11.21% increase over the past week. With analyst optimism and strong technical indicators, Solana’s price movement in the coming days will be closely watched by investors and enthusiasts alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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