Breaking $150 Will Be a Defining Moment for Solana Coin

Solana (SOL) price is on the verge of breaking out of a bullish reversal pattern that could send the altcoin into a recovery rally.

This is only possible if broader market signals keep volatility low and investors respond to the current value of the SOL.

Solana price could see a rise

Solana price, currently trading at $139, is forming a descending wedge that could break out soon. This view is supported by the Relative Strength Index (RSI), which measures the speed and variability of price movements.

Along with the RSI, the Moving Average Convergence Divergence (MACD), which indicates trend strength and potential reversals in asset prices, indicates an uptrend.

Both indicators point up ROI In the bullish zone above the neutral line at 50.0. At the same time, the MACD observes a persistent bullish crossover, which could help SOL break the wedge.

Learn more: How to Buy Solana (SOL) and Everything You Need to KnowH

This could result in appreciation as the altcoin is currently undervalued. This is derived from the price-to-income ratio P/S observed by the asset.

The price-to-sales (P/S) ratio determines the value of an asset, with a low ratio meaning the stock is undervalued. Conversely, a ratio above average may indicate that the stock is overvalued.

Solana's revenue increased significantly In recent months, with its peak recorded in March. However, at the same time, the P/S ratio was much lower than it was during the weak earnings periods of Q4 2023.

This is an indication that Solana has room to grow In front of her.

Solana Price Prediction: Waiting for a Breakout

For three weeks, it has been Solana Price Stuck in a falling corner. Over this period, this upward trend was validated during the recent correction and recovery.

The descending wedge is characterized by converging trend lines sloping downward, forming a bullish chart pattern, indicating a potential reversal of the downtrend. This generally suggests a reduction in selling pressure and a possible upward price breakout.

Considering the above factors and SOL trading directly below the wedge's upper trendline, it is likely that the altcoin will break out soon. This would allow Solana to break through the $142 resistance and reclaim $150 as a support floor.

Learn more: How to buy Solana (SOL) on Binance Exchange

This crucial psychological level has been repeatedly tested as resistance. A break above this level led to a rally. Going forward, investors can also expect the same this time.

However, if the hack fails SOL fell back to $134 , a drop to $120 could be observed. Missing this support would invalidate the bullish thesis, extending the correction to $110.