As a seasoned analyst with over a decade of experience in the cryptocurrency market, I have seen my fair share of bull runs and bear markets. In this current bull cycle, Solana (SOL) has been one of the standout performers, accumulating steadily since early this year. With its price now sitting at a crucial support level, I believe that $SOL is gearing up for a massive breakout – but only if Bitcoin can lead the way higher first.
In the current cryptocurrency bull run, one notable altcoin, Solana ($SOL), has been steadily accumulating value since the start of the year. At a significant horizontal support line, some are wondering if $SOL is preparing for an epic price surge, suggesting a potential breakout could be imminent.
$BTC and Breakpoint conference catalysts for $SOL price
In discussing potential growth of any altcoin, it’s crucial to note that the primary factor influencing this (unless there’s exceptional news about the altcoin itself) often boils down to Bitcoin‘s performance. If Bitcoin is poised for a significant rise, the altcoins with robust fundamentals are likely to mirror its trajectory.
Speaking of which, Solana is hosting its Breakpoint conference over the upcoming weekend, and there’s talk that several significant announcements are in store. Historically, the price of SOL tends to increase leading up to such events, yet this year, the anticipated rise hasn’t been observed as of now.
For now, the price of Solana (SOL) remains above a significant support point, which is the 0.618 Fibonacci level at approximately $129. If Bitcoin (BTC) manages to reclaim its previous local peak of around $65,000 and surpass it, it could signal the resumption of the bull market, allowing altcoins like Solana to potentially surge ahead.
$SOL on the way back up
Over a brief period, the Solana ($SOL) price has been moving within a falling trendline (descending channel), touching the lower boundary which serves as its support (represented by a horizontal black line). However, upon reaching this floor yet again, an uptrend (ascending channel) seems to be boosting the price upward.
Currently at the base of this upward-trending channel, there’s a strong possibility the price will move up again towards the upper trend line.
Breakout point is not far above $SOL price
On a daily basis, it appears that the downward slope isn’t significantly higher than the current price. A potential breakout could indicate a significant increase in price. The 200-day exponential moving average (EMA) is slightly above (represented by the red line), further reinforcing the rejection of the recent upward trend.
Positive macro chart for $SOL
Looking at a broader perspective over a week, it appears that there’s a clearer potential for Solana ($SOL) to increase in price. The robust base of the parallel channel provides significant support, which is crucial. Additionally, a sturdy horizontal support level exists below this point at $79.
If the price of SOL manages to reclaim its highest point within the current range, there’s a possibility it might surge past this level, leading us towards another breakout. This breakout could theoretically propel SOL back towards its previous all-time high of $260.
Examining the base of the graph, it seems like the Stochastic RSI is starting to recover. Once these two lines head upward and intersect above the 20 line, it might suggest a robust increase in momentum that could propel $SOL back towards its all-time high and beyond.
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2024-09-16 14:24