Solana ($SOL) breaking out – leaves major competitors in its wake

by

As a seasoned crypto investor with a knack for spotting promising altcoins, I must admit that Solana ($SOL) has caught my attention like a beacon in this bull market. Its performance mirroring Bitcoin’s ($BTC) and recent breakouts from various technical patterns have me intrigued.

Will Solana surpass Bitcoin now?

$SOL breaking out of ascending triangle

For the near future, when it comes to Solana’s value against the U.S. dollar (SOL/USD), there appears to be a potential breakout from a small ascending triangle pattern. If this breakout is successful, the estimated move could bring Solana very close to its record high price.

Conversely, if it turns out to be a decoy, and the price plummets beneath the triangle’s base, the 0.786 Fibonacci level functions as robust support underneath.

SOL/BTC pair breaks out from 9-week triangle

As a researcher, I find the SOL/BTC pair intriguing on a weekly basis. After a nine-week triangle formation, there’s been an upward breakout at approximately $0.0023 sats. This significant support level has proven robust, and now we’re observing an attempt to breach the subsequent resistance level around $0.0027.

At the base of the graph, the Stochastic RSI continues indicating a downward trend for Bitcoin, which seems beneficial. Interestingly, the blue line (indicator) is presently forming a pattern to cross over the red line (indicator), suggesting that the momentum might soon shift in favor of Solana.

SOL/ETH short-term diamond pattern breaks to the upside

For Ethereum bulls, the trend against $SOL (SOL/ETH) is even more worrying. A recent breakout to the upside from a diamond pattern has meant that $SOL is closing the gap between it and its layer 1 competitor. Holding above the 1.618 for this move is likely to lead to new higher highs.

Momentum all in $SOL’s favour against $ETH

As we forecast the future SOL/ETH price trend, it’s evident that Solana ($SOL) has managed to break free from the price range it maintained with Ethereum for much of 2024. Currently, the price trajectory is pointing towards reaching the 1.618 Fibonacci level at approximately 0.089 ETH.

Beneath the graph lies the Relative Strength Index (RSI). For the RSI line to prevent a significant bearish divergence favoring ETH, it should climb above 90.00.

Toward the base of the graph lies the Stochastic RSI (Relative Strength Index), indicating that the momentum has once again shifted towards Solana ($SOL) following a brief period where Ethereum ($ETH) held an advantage.

$SOL to continue to outperform both $BTC and $ETH

To put it simply, it seems that Solana (SOL) could surpass both Bitcoin (BTC) and Ethereum (ETH) in the future. Although Solana operates on a different layer than Bitcoin, it does indeed share similarities with Ethereum.

In simpler terms, although the value of Ether (ETH) is currently about three times greater than that of Solana (SOL), due to its newer technology, faster, and less expensive transactions, Solana is expected to continue narrowing this difference significantly.

Read More

2024-11-19 15:13