Is Solana Heading Toward $350 or $150?  Analysts Insights

• Solana’s price within a parallel channel signals a potential surge or drop.
• Outflow spikes indicate bullish sentiment, while inflows often cause price dips.
• RSI shows oversold conditions, but MACD’s bearish crossover signals caution.

Solana (SOL) is currently at a crucial crossroads. As it hovers near $198, traders and analysts are keenly eyeing its price movement. Crypto analyst Ali has pinpointed a key pattern that could dictate the next major move for the asset: a potential surge to $350 or a sharp decline toward $150. 

Parallel Channel: A Pivotal Pattern

Solana has been trading within a well-defined parallel channel, which suggests that its price is currently contained within specific boundaries. These channels can often lead to significant price moves as the asset either breaks out above the upper resistance or falls below the lower support. 

According to Ali’s analysis, if Solana maintains its position within this channel, it could experience a push toward $350, testing its upper resistance. However, a breakdown could trigger a sharp correction, bringing the price down to $150.

Inflow and Outflow Trends: A Bullish or Bearish Indicator?

The relationship between Solana’s price and its net inflow/outflow also provides valuable insights into market sentiment. Historically, significant outflows have often been followed by price increases, suggesting that outflows typically reflect bullish sentiment. 

Source: Coinglass

For instance, major outflows of over $100 million occurred in May, October, and December, leading to price rallies. On the other hand, large inflows tend to correlate with price dips, as seen in November and early January. 

Currently, the market appears to be consolidating with balanced inflows and outflows. This indicates that traders are waiting for the next major catalyst before making decisive moves.

RSI and MACD: Mixed Signals

SOL/USD daily price chart, Source: Trading view

As of press time trading at ​​$202.58, the Relative Strength Index (RSI) is currently sitting at 42.40, suggesting a neutral to slightly oversold market. This could mean that Solana is due for some consolidation or a potential rebound. However, traders should be cautious. 

The Moving Average Convergence Divergence (MACD) histogram shows a bearish crossover, with the MACD line below the signal line. This indicates weakening bullish momentum, which adds further caution for those looking to go long.