Solana (SOL) Price Breakout: 25% Rally Likely Due to This Reason

Analysis3wks agoUpdate 6086cf...
35 0

In Brief

  • Solana’s price is currently moving in an ascending triangle pattern, per which a 25% rally is possible.
  • The Relative Strength Index sustaining in the bullish zone is an indication of broader market bullishness.
  • Sharpe Ratio nearly recovering from negative to positive could attract new investors to the altcoin.

Solana’s (SOL) price is making its way out of a bullish pattern, which has set the target at a three-week high.

With the rest of the crypto market slowly turning optimistic about recovery, the altcoin could reach this target, too.

Solana Is an Attractive Investment

Solana’s price is moving up, and by the looks of it, so are the chances of the altcoin grabbing the attention of new users. This is because SOL, at the moment, is recovering from bearing negative risk rewards to positive.

Evinced by the Sharpe Ratio making its way into the positive zone above the zero line, Solana appears to be an attractive investment. This could bring board investors from other assets and first-timers, given the altcoin has an exceptional reputation in the market.

Solana (SOL) Price Breakout: 25% Rally Likely Due to This Reason
Solana Sharpe Ratio. Source: Messari

Read More: How to Buy Solana Meme Coins: A Step-By-Step Guide

Secondly, the broader market cues are also turning bullish. The Relative Strength Index (RSI) proves the same, persisting in the bullish zone above the neutral line, marked at 50.0.

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI values range from 0 to 100, with levels above 70 indicating overbought conditions and levels below 30 indicating oversold conditions.

Solana (SOL) Price Breakout: 25% Rally Likely Due to This Reason
Solana Sharpe Ratio. Source: TradingView

Since the altcoin is far from overbought, SOL has enough room to observe further growth.

SOL Price Prediction: Look Up

Solana’s price, trading at $154 at the time of writing, is breaking out of its ascending triangle pattern. An ascending triangle is a bullish continuation pattern formed by a horizontal resistance line and a rising support line. A potential breakout above the resistance level signals a continuation of the uptrend.

This is also the case with Solana since the altcoin is above the $153 resistance. Per the pattern, the altcoin’s potential target is $191. This is almost 25% above the trading price.

Solana (SOL) Price Breakout: 25% Rally Likely Due to This Reason
SOL/USDT 8-hour chart. Source: TradingView

This rally is possible if SOL manages to flip the $169 resistance into support.

Read More: Solana (SOL) Price Prediction 2024/2025/2030

However, if Solana fails to sustain $153 as support and falls through, it could test the $137 line as support. Losing it might invalidate the bullish outcome, resulting in further drawdown.

Best crypto platforms in Europe | April 2024

This article is sourced from the internet: Solana (SOL) Price Breakout: 25% Rally Likely Due to This Reason

Related: Will Hong Kong’s Bitcoin (BTC) ETF Approval Help Reclaim $70,000?

In Brief Hong Kong has become the second country to approve Bitcoin and Ethereum ETFs. Institutions are waiting for the halving event to regain profits and netflow of BTC. Despite the hesitation, Bitcoin’s price will likely recover owing to the potential accumulation of retail investors. Bitcoin’s (BTC) price is reeling from the recent corrections, and to boost the recovery, a major development took place on Monday. Will this event cause BTC’s climb back to $70,000 and potentially a new all-time high? Bitcoin Finds Approval in Hong Kong Bitcoin’s price showed signs of recovery as the biggest cryptocurrency in the world found acceptance in Hong Kong. The country approved the applications of spot Bitcoin and spot Ethereum ETFs on April 15, becoming the second region in the world after the United…

 

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...