Key takeaways:
Historical chart patterns and the Fibonacci Retracement metric hint at a Solana price rally to $300.
Solana’s $7.5 billion in futures open interest and negative funding rates could be a sign that a powerful short squeeze is in the making.
Solana (SOL) price tested the $180 resistance level on May 11, but it has since consolidated below this key threshold and appears unable to establish a sustained bullish position. However, the altcoin has maintained a positive signal by closing above the 50-week exponential moving average (EMA) for three consecutive weeks. This critical level has historically acted as a catalyst for significant price rallies.
Solana 1-week chart. Source: Cointelegraph/TradingView
In late 2023, SOL broke through the 50-week and 100-week EMAs, solidifying its position above these levels before surging 515% by March 2024. The relative strength index or RSI on the weekly chart is currently at 52.60, indicating growing buying pressure.
This setup mirrors past patterns