The Solana price has been correcting for a period of two weeks. The rise over the last two days has brought $SOL back to $100. Where does the price go from here?
With practically all eyes on bitcoin and the probable impending approval of a Spot ETF, most of the altcoins maybe aren’t feeling the love right now. Bitcoin dominance has been accelerating its trend higher since late December, and altcoins have suffered accordingly.
$SOL corrects against $BTC pair
However, there are a few altcoins with very strong fundamentals that are starting to buck the trend. Solana (SOL) is one of these.
Source: Trading View
Zooming right out on the weekly time frame it can be seen that $SOL has been steadily moving up against its $BTC pair since mid 2023. However, the price met with resistance during the Christmas week, and a steady decline followed. Now, perhaps having found a bottom at an equally strong support, this could be the time for $SOL to begin to take the initiative from $BTC again, especially once the Spot Bitcoin ETF news finally drops and $BTC comes up against its own hugely strong resistance at $48,000 to $50,000.
Short term bull flag playing out
Source: Trading View
Looking at $SOL against $USDT a downward channel has formed, which is containing the price action. This does look like a bull flag and a third touch of the top trend line has recently been made.
However, it might be expected that the price wanders sideways and downwards in this area for a while, giving the shorter time frame momentum indicators time to reset, and also a chance for Bitcoin dominance to eventually start to subside.
All-time-high on horizon
For the longer term, $SOL is in a good position to eventually break its all-time-high of $260, set back in early November of 2021. If it gets that far, or how much higher it can go after that will depend on how well development of the Solana blockchain goes, and also, how strictly regulators will clamp down on the entire crypto industry.
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/2024/01/solana-sol-ready-to-take-spotlight-from-bitcoin-btc