With an increase in the price of over 12,000% this year, will Solana continue its bull run in the upcoming months?
Solana (SOL) saw a massive rise this year and is, at the time of writing, valued as the 5th biggest cryptocurrency, with a market cap of almost $74 billion. Currently, Solana’s biggest event, “Breakpoint” is going on in Lisbon, Portugal.
Solana claims to be the fastest blockchain and growing ecosystem. This Friday, Solana Ventures, Lightspeed Venture Partners, and FTX announced to invest $100M in GameFi.
Popular as the Ethereum killer, Solana can process up to 50,000 transactions per second with extremely low fees.
Check out Cardano vs Solana for a detailed comparison of the two most popular blockchains.
In this article, we will analyze the future outlook of the SOL token using its trading pair with USDT and BTC.
SOL/USDT on a 3D chart
At the beginning of this year, SOL was trading at around $2. Currently, it is trading at 100 times that price with a chart that signifies that the bulls aren’t exhausted yet! Last weekend, SOL made a new all-time high as it touched $260. At the time of writing, the coin is trading at around $245.
On the chart, you can see the Fibonacci levels drawn from the low in July to the high in September. Right now, Solana is moving upwards to break the former all-time-high and seems to be slowly starting the next leg up.
SOL/USDT on a 1D Chart
Ever since the “bottom” in September, Solana has been in a solid uptrend. It is making higher highs and higher lows. As a bull, you want to see a higher low again, preferably around the mentioned supply zone, to flip it into support.
SOL/USDT in a 4H Chart
The 4h chart is showing a low on Oct. 24. A few days later you see a successful retest of that low, and the price rallied 40% afterwards. Some mixed signals can be observed right now. The most recent top had a bearish divergence; however, hidden bullish divergence is forming right now. It is formed when the indicator makes a lower low, but the price makes a higher low, as visible on the chart.
SOL/BTC
In this chart, SOL is being compared to Bitcoin in a 4-hour time frame. A bearish divergence can also be observed here that has already played out, however, we cannot tell if it is done yet. The price is currently moving near the support level. An important former high can be flipped into a support zone here.
If this zone indeed creates support for Solana, the uptrend can continue in the coming weeks.
Summary
The price of SOL increased with the launch of the event in Lisbon. It is currently the 5th biggest cryptocurrency, with a market cap of around $74 billion.
The 3D chart looks very solid. The price has just made a new all-time high and bulls don't seem to be exhausted yet.
The 1D and the 4H also show an uptrend. If SOL falls from here, it would create a higher low and continue this trend afterwards. Given the price movement right now, there is a possibility of a rise in price from here.
SOL, in its BTC trading pair, is about to flip an important resistance into support.
Given the state of the market, further upside movement for SOL is possible in the upcoming months.
Keep in mind that all of the above are solely the thoughts of the writer. Always do your own research and never take anything for granted!
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