Solana W Pattern Could Propel SOL Price to $174, Liquidating $2.98 Billion in Short Positions

Ali Martinez predicts a bullish future for Solana, highlighting a “W” pattern that suggests a price surge to new heights and potential short liquidations.

Ali Martinez, a seasoned analyst, has recently taken to X (formerly Twitter) to discuss Solana’s (SOL) potential price movement. His analysis highlights a “W” pattern on Solana’s chart, suggesting a significant bullish reversal.

#Solana appears to be forming a W pattern, which suggests $SOL will surge toward $174! pic.twitter.com/OxXODWi1yA

— Ali (@ali_charts) July 15, 2024

Martinez points out that the “W” pattern, also known as a double bottom, indicates a bullish trend towards a target of $174. The first bottom occurred on June 24, at around $122, followed by a peak in early July at $155, and the second bottom around July 5. The price has recently broken above the resistance formed by the peak between the two bottoms. 

Liquidation Potential at $176

However, in another analysis, Martinez highlighted the potential for substantial liquidations if Solana’s price reaches $176. The provided heatmap shows a significant concentration of $2.98 billion in short positions that will be forced to liquidate at this level. 

This liquidation event could create a short squeeze, driving the price higher as short sellers buy back the asset to cover their positions. The data from July 3 indicates that at a price of $175.989, the liquidation leverage was approximately $2.98 billion.

Raoul Pal’s Bullish Projections for Solana

In a previous analysis, Raoul Pal, CEO of Real Vision Group, shared Martinez’s optimistic outlook. Pal envisioned Solana’s price to rise significantly, projecting it to reach between $800 and $1,200 during a complete bubble cycle, potentially even surpassing $2,000. In a shorter market cycle, he estimates the price could hit around $750.

Pal’s confidence in Solana’s future is bolstered by its new validator, Fire Dancer, which can process one million transactions per second. 

Today, Solana’s price is $156, with a 24-hour trading volume of $3,389,390,159. This marks a 2.61% increase in the last 24 hours and an 11.21% increase over the past 7 days. Solana’s market cap stands at $72,441,249,341.