A bullish breakout from the key resistance sets the SOL price for a higher rally; Should you enter?
Published 2 hours ago
In the midst of a broader crypto market upswing, the Solana price has been riding a veritable wave of bullish momentum. Over a five-day winning streak on the daily chart, the coin price action completed an inverted head and shoulders pattern, a common bottoming formation that often signals a reversal in bearish sentiment. On October 30th, this pattern culminated in a decisive breakout above the $20.8 resistance level, further fueling the altcoin’s upward trajectory.
Is Current Recovery Sustainable?
- The reclaimed 200-day EMA could offer strong support to the buyers.
- A bullish breakout from the overhead trendline would set the coin by 11%.
- The 24-hour trading volume on the Solana coin is $161.4 Million, indicating a 13% gain.
On September 30th, the Solana price confirmed the pattern’s efficacy by breaking through the neckline of the inverted head and shoulders formation. This technical breakout was substantiated by an intraday gain of 5.5% today, pushing the price to breach yet another horizontal resistance at $22.2.
Trading at $22.5 at the time of this analysis, these recently pierced resistance levels may now serve as robust support zones during any market pullbacks. Should the SOL price maintain its foothold above $22.1, we could see buyers propel the price by another 13%, targeting the $25.5 zone.
However, caution is advised as the long wick rejection around the $24 mark on the daily chart suggests a potential minor pullback, providing traders with a potential re-entry point during a retest.
SOL vs BTC Performance
Source: Coingape| Solana Vs Bitcoin Price
Comparative analysis over the past three months reveals that SOL has outshone BTC in terms of recovery, especially in the last week. While the Bitcoin price has shown a more tepid bounce back, indicating a short-term sideways trend, The Solana price has not only displayed a stronger recovery but also formed its first higher low—a generally bullish indicator.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.