Among the top cryptocurrencies, and with the exception of Bitcoin ($BTC), Solana ($SOL) is proving to be the most likely of the large-cap altcoins to lead the rest of the field higher. Outperforming $BTC, and rapidly gaining ground on Ethereum ($ETH), is $SOL about to fly much higher?
Soaring higher than any other cryptocurrency in the top-50 by market capitalization over the last 7 days, Solana is showing that after its 7-month price hiatus, it is ready to explode out of this sideways action and lead the rest of the crypto market upwards.
$SOL inverse head and shoulders target $202
Source: TradingView
The short-term view for the $SOL (SOL/USD) price shows that an inverse head and shoulders chart pattern is currently still playing out. The price has already been back to confirm the neckline breakout and so it might be expected that $SOL continues upward from here.
Up ahead is the descending trendline from the last 7 months of sideways price action. If $SOL can climb above this trendline, it would look favourite to complete the measure move from the head and shoulders pattern, which would take it to $202. From there, it would only be a relatively short distance to the last local high at $209.
$SOL breaks out of huge triangle against $BTC
Source: TradingView
Against its $BTC pair (SOL/BTC) it can be observed that $SOL has broken out of a huge triangle, which has been seven months in the making. As it stands, the $SOL price is attempting to consolidate above the upper trendline. Horizontal support is also at this level.
$SOL in price discovery against $ETH
Source: TradingView
It’s against its $ETH pair (SOL/ETH) that the $SOL price has really put down a marker. A large range was entered into back in December 2023, and after a series of fake-outs, the $SOL price was able to definitively break out of the range nine months later in September.
Around three weeks of consolidation above the range ensued, and then on 19 October, the price rocketed higher into price discovery, given that the top of the range coincided with the long-time high of November 2021.
Going by the Fibonacci extension levels, the next targets for SOL/ETH are 0.089 ETH at the 1.618 Fibonacci, and 0.14 ETH at the 2.618.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/10/solana-sol-about-to-fly-higher