Solana (SOL), the high-performance blockchain platform, is showing signs of a potential upside breakout, according to recent technical analysis and insights from prominent crypto traders.
As Bitcoin (BTC) consolidates near its all-time high, analysts are eyeing SOL for a potential leg up that could propel the token to prices between $150 and $200.
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SOL/BTC Pair Hints at Upcoming Rally
Trader KALEO has observed that the SOL/BTC trading pair appears ready to make another push towards the highs seen in spring 2022. If Bitcoin prices remain stable within their current range, this move could translate to a USD price of around $200 per SOL token.
The SOL/BTC pair is a crucial indicator for traders, as it helps them assess the relative strength of Solana against the world’s leading cryptocurrency. A bullish move in this pair suggests that SOL may outperform Bitcoin in the near term, attracting more investors to the Solana ecosystem.
Short-Term Breakout Signals $150 Target
On the shorter-term timeframes, trader Captain Faibik has identified a bullish pennant formation on the 1-hour SOL chart. This technical pattern often precedes a strong upward move, with Captain Faibik predicting a breakout towards the $150 mark.
Pennants are considered continuation patterns, meaning that they typically resolve in the direction of the prevailing trend. With SOL already in an uptrend, a confirmed breakout from this pennant could provide the necessary momentum for the token to challenge higher price levels.
Recent Price Action and Key Levels to Watch
Our analysis of the daily SOL chart reveals that the token broke out of an ascending channel on February 29. However, SOL faced resistance and failed to maintain its upward trajectory, as evidenced by a sharp red candle on March 5, coinciding with Bitcoin’s sudden plunge after hitting a new all-time high of $69,000.
Despite this setback, SOL has managed to hold above its 200-day moving average (MA), which currently stands at $63.23. The 200-day MA is a widely followed long-term trend indicator, and trading above this level suggests that SOL remains in a bullish market structure.
When an asset’s price is above the 200-day MA, it is generally considered a positive sign, indicating that the long-term trend is up. As long as SOL continues to trade above this key support level, the overall bias remains bullish, and the token may be more likely to attract buyers on dips.
Momentum Remains Strong as RSI Approaches Overbought Territory
The daily chart Relative Strength Index (RSI) for SOL currently stands at 68.27, signaling strong bullish momentum. The RSI is a popular momentum oscillator that measures the speed and change of price movements, with readings above 70 indicating overbought conditions and readings below 30 suggesting oversold conditions.
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Show more +While an RSI of 68.27 is not yet in overbought territory, it does indicate that bullish momentum is building. Traders should be aware that as the RSI approaches 70, there may be an increased likelihood of a short-term pullback or consolidation before the uptrend resumes.
As Solana continues to develop its ecosystem and attract new projects, the growing interest from traders and investors could help fuel a new wave of adoption and price appreciation. With technical indicators flashing bullish signals and prominent traders setting their sights on higher price targets, SOL appears well-positioned to capitalize on the overall positive sentiment in the cryptocurrency market.
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