On February 7, 2025, Solana (SOL) exhibited a hidden bullish divergence, a technical pattern that has historically propelled its price upward. According to a tweet by Trader Tardigrade on the same day, this pattern was responsible for pushing SOL from $135 to $265 within two months starting from December 7, 2024 [1]. If this pattern repeats, SOL could potentially reach $340 within a few months. The tweet included a chart illustrating the divergence, with the Relative Strength Index (RSI) showing a higher low while the price formed a lower low, a classic sign of hidden bullish divergence [1]. This event was accompanied by a significant increase in trading volume, with SOL's 24-hour volume jumping from an average of $1.2 billion to $2.8 billion on February 7, 2025 [2]. The trading volume spike was observed across multiple exchanges, including Binance and Coinbase, indicating strong market interest [2].

The hidden bullish divergence has significant implications for traders. The pattern's historical performance suggests that entering long positions could be profitable. On February 7, 2025, the SOL/BTC trading pair saw an increase from 0.0025 BTC to 0.0028 BTC, while the SOL/ETH pair moved from 0.045 ETH to 0.048 ETH, indicating a bullish trend across different trading pairs [3]. The on-chain metrics also support this bullish sentiment, with the number of active addresses on the Solana network increasing by 15% from 500,000 to 575,000 within the last 24 hours ending February 7, 2025 [4]. The increase in active addresses suggests growing network activity, which often correlates with price increases. Additionally, the total value locked (TVL) in Solana's decentralized finance (DeFi) ecosystem rose from $10 billion to $11.5 billion on the same day, further indicating strong market confidence [5].

Technical indicators further reinforce the bullish outlook. The Moving Average Convergence Divergence (MACD) for SOL crossed above the signal line on February 7, 2025, signaling a potential buy signal [6]. The 50-day moving average (MA) also crossed above the 200-day MA, a classic 'golden cross' pattern, which historically has been a bullish indicator for SOL [6]. The trading volume data for February 7, 2025, showed a peak of $2.8 billion, compared to an average of $1.2 billion over the previous month, indicating increased market participation [2]. The Bollinger Bands for SOL expanded on the same day, suggesting increased volatility and potential for price movement [7]. These technical indicators, combined with the hidden bullish divergence, provide a strong case for a bullish trend continuation.

Given the current analysis, traders should consider the following strategies: monitoring the SOL/BTC and SOL/ETH pairs for further bullish confirmation, watching for continued increases in on-chain activity, and keeping an eye on the MACD and moving averages for additional buy signals. The hidden bullish divergence, coupled with strong on-chain and technical indicators, suggests that SOL could indeed reach $340 within a few months, as predicted by Trader Tardigrade [1].

[1] Trader Tardigrade (@TATrader_Alan). "#Solana shows a Hidden Bullish Divergence 🔥 This signal took $SOL from $135 to $265 in just two months. If the pattern holds, $SOL could hit $340 within a few months. 🚀" Twitter, February 7, 2025.
[2] CoinGecko. "Solana Trading Volume Data." February 7, 2025.
[3] Binance. "SOL/BTC and SOL/ETH Trading Pair Data." February 7, 2025.
[4] Solana Explorer. "Active Addresses Data." February 7, 2025.
[5] DeFi Llama. "Total Value Locked in Solana DeFi." February 7, 2025.
[6] TradingView. "Solana Technical Indicators." February 7, 2025.
[7] Investing.com. "Solana Bollinger Bands Data." February 7, 2025.