Solana ($SOL) is certainly the major altcoin of this bull market. Performing very much like Bitcoin ($BTC), the $SOL price went sideways for eight months, before breaking out of a bull flag. The recent gains are similar to those of Bitcoin, but will Solana now outperform?
$SOL breaking out of ascending triangle
Source: TradingView
Against the US dollar (SOL/USD) in the short-term time frame, the $SOL price looks to be breaking out of a small ascending triangle. If the breakout is confirmed, the measured move could take $SOL to within a sliver of its all-time high.
If on the other hand, this becomes a fake-out, and the price falls through the bottom of the triangle, the 0.786 Fibonacci is acting as good support below.
SOL/BTC pair breaks out from 9-week triangle
Source: TradingView
The (SOL/BTC) pair looks very interesting on the weekly time frame. A 9-week triangle has just been broken to the upside by $SOL. Very strong support at 0.0023 sats has held firm, and the price is now trying to break the next level of resistance at 0.0027.
At the bottom of the chart, the Stochastic RSI is still showing a downtrend, which is in Bitcoin’s favour. However, the blue indicator line is currently shaping to cross above the red indicator line, signalling that the momentum could be about to turn in Solana’s favour.
SOL/ETH short-term diamond pattern breaks to the upside
Source: TradingView
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
Source: TradingView
Looking ahead for the SOL/ETH price, it can be seen that $SOL has broken out of the range it was in with $ETH for most of 2024. The price is currently heading up to the 1.618 Fibonacci at 0.089 ETH.
Underneath the chart is the Relative Strength Index, which is showing that the indicator line will need to get above 90.00 in order to avoid what would be some very strong bearish divergence in favour of $ETH.
At the bottom of the chart is the Stochastic RSI, which is displaying that momentum is now back in $SOL’s favour, after a bit of a dip in favour of $ETH.
$SOL to continue to outperform both $BTC and $ETH
In summary, it does look as though $SOL is going to outperform both $BTC and $ETH going forward. However, while $SOL is a layer 1, it is not in the same niche as $BTC. That said, it certainly is occupying the same space as $ETH.
The $ETH price is more than 3x the size of $SOL by market capitalisation, but with newer technology, and faster, and cheaper transactions which are far outnumbering those taking place on Ethereum, Solana is likely to keep reducing this gap.
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/2024/11/solana-sol-breaking-out-leaves-major-competitors-in-its-wake