SOL’s SuperTrend: 1,300% Rally or Just Another Crypto Fairy Tale? 🚀💰

by

Key takeaways:

  • Solana’s Supertrend indicator, that fickle oracle of the markets, has whispered a “buy” signal-a siren’s call that once lured traders into a 1,300% price odyssey. 🧭✨

  • Yet, resistance at $250 and overbought conditions threaten to drag SOL back to the mortal realm of $220. ⚔️💔

In the labyrinthine world of cryptocurrency, where hope and greed dance a macabre waltz, Solana’s (SOL) SuperTrend indicator has once again donned its prophet’s cloak. On the weekly chart, it has flipped from red to green, a sign that has historically heralded parabolic ascents. But beware, for the markets are a fickle mistress, and history, though a guide, is no guarantor of the future.

Past Glories: 620%-3,200% Rallies, or Just Echoes of a Bygone Era? 🏰💸

The SuperTrend indicator, that enigmatic overlay of the chart, has in the past pointed the way to rallies of 3,200% and 620% during the 2021 bull market. Its calculations, incorporating the average true range, have served as a beacon for traders navigating the tempestuous seas of market trends.

The last time this indicator flashed its “buy” signal was in July 2023, preceding a 1,339% rally to all-time highs above $295, reached on Jan. 19, from just above $20. But can lightning strike twice, or is this but a fool’s errand? 🤡⚡

“Supertrend will flip green/buy if $SOL can close a weekly candle above $220.45,” proclaimed analyst Dorkchicken in an X post last week, adding with a flourish:

“Last time was in 2023, and the price went from $39 to $294. But remember, past performance is not indicative of future results. Or is it? 🤔📈”

Indeed, the SuperTrend indicator has reversed from red to green and flipped below the price as SOL crossed $220 on Wednesday. If history repeats itself, SOL could soar to $1,000, fueled by the insatiable demand of Solana treasury companies and the potential approval of spot Solana ETFs in the US. But then again, if wishes were horses, beggars would ride. 🏇🌈

Solana’s Rally Hits a Wall at $250-For Now 🧱💥

Solana’s 60% rally from Aug. 2 lows around $155 has met its match at $250, as profit-taking and buyer exhaustion set in. “$SOL is approaching the first resistance zone,” observed analyst Crypto Seth in an X post on Sunday, as the price neared $250. “Let’s see how much of a pullback we get. Or will it break through like a bull in a china shop? 🐂🍽️”

The relative strength index climbed to a lofty 70 on the daily chart and 83 in the four-hour time frame, signaling overbought conditions. This triggered a 7% correction from eight-month highs at $250 on Sunday to current levels around $237. The price action has formed a descending parallel channel on the four-hour chart, as shown below. An important area of support for SOL lies within the $230 and $227 demand zone, which are the lower boundary of the channel and the 50 SMA, respectively.

Below that, the price could drop toward $220 before making another attempt at recovery. Or perhaps it will plummet into the abyss, leaving traders to rue their hubris. 🕳️😱

Despite the ongoing pullback, many analysts remain steadfast in their conviction that Solana will continue its rally to $300 and beyond. “$SOL is showing strong momentum,” Cipher X declared in an X post on Monday, adding that the nine-weekly EMA crossover above the 15-weekly EMA confirmed the uptrend.

“The next liquidity target sits near $300, where buyers could push for a breakout. Or maybe they’ll just push each other off a cliff. 🤸‍♂️🌋”

As CryptoMoon reported, breaching the $250-$260 resistance will put the next significant resistance at $295 in play, fueled by increasing futures open interest and total value locked. But in the world of crypto, nothing is certain-except uncertainty. 🔮🤷‍♂️

Read More

2025-09-15 17:44