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Is it a good time to buy Solana?
As we begin the new year of 2025, investors are left wondering whether now is the right moment to enter the Solana market. The altcoin has experienced significant growth and volatility in recent years, with its token (SOL) surging by over 2,500% in 2024 alone.
While some may be hesitant due to the unpredictable nature of crypto markets, others are likely considering investing in Solana as it has continued to defy expectations. The platform has seen a massive surge in transaction volume and transaction count, eclipsing even its rival Ethereum in certain metrics.
It’s essential to consider the near-term future before making any decisions, however. There is a significant event on the horizon that could potentially impact the SOL price: the token unlock. This will be taking place in 2025, and its implications are far from clear at this point.
While it’s impossible to predict with certainty how the market will react, we can take a closer look at the current trends and technical indicators to better understand what lies ahead.
The daily chart of Solana indicates that the price is currently trading within an ascending triangle. This pattern has been signaling an uptrend in the short-term perspective. The token is also very close to testing the immediate resistance zone between $197 and $200.22, which could serve as a significant barrier for any potential pullback.
Furthermore, the MACD levels are displaying a drop in selling pressure while preparing for a bullish crossover. This could potentially further accelerate the price’s upward momentum.
Lastly, there has been an unusual phenomenon observed in recent weeks – a massive volume squeeze. As the buying volume continues to grow, it’s increasingly likely that we’ll see a powerful breakout beyond the current ATH.
While some may be cautious due to the token unlock on the horizon, it seems that the near-term future of SOL is more aligned with the possibility of a continued uptrend rather than a significant reversal.
As mentioned earlier, Solana has faced various outages and criticisms throughout its history. In spite of this, market participants remain optimistic about the platform’s potential. As long as the token stays within the ascending triangle pattern, we can anticipate it to climb steadily towards $210 before making an attempt at breaking above the current all-time high.
It is crucial for investors to keep a close eye on the MACD levels and the volume squeeze in order to be prepared for any potential changes that may arise from the token unlock.
Source: coinpedia.org
