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Price Analysis

Solana At All-Time Highs, Will BTC Pump SOL/USDT Bulls To $95?



Crypto Price Analysis laptop

Solana and other next generation blockchains rising to prominence is due to the tremendous rise of DeFi.

In just two years, SOL, the native token of the platform, has earned a slot in the top-10.

Breaking into the top-10 as one of the most valuable crypto projects often tag along with many perks. Liquidity, eye-balls, and yes—an explosion of community members.

Solana Market Performance and Status

The smart contracting platform now finds itself at this point.

Solana is now commanding headlines with tremendous tailwinds like trading at new all-time highs and more than 3X after bottoming up in Q2 2021.

At the time of writing, SOL is at 10th, flipping Uniswap, Chainlink, and a host of other high-profile projects.

Behind it is an uptick in trading volumes in the past few trading weeks.

Solana Price Daily Chart for August 20

Adding 61 percent versus the greenback week-to-date, SOL is relatively steady on the last trading day. Optimistic, SOL/USDT prices are now trading within a bullish breakout pattern.

Now that the path of least resistance has been defined—encouragingly with hints of even more headroom as per the Fibonacci extension levels anchoring on the H1 2021 trade range–, SOL could post more gains in the next few days.

Using Fibonacci tools, the reversal from the 61.8 percent Fibonacci retracement level of the H1 2021 trade range may be a launching pad for even more gains towards $95—the 1.618 Fibonacci extension level.

If this is the case, Solana could post an additional 30 percent in a buy trend continuation pattern in subsequent sessions.

SOL Buyers Set Sight on $96

For this, many traders are confident of even more surges.

On Twitter, one trader says the best loading prices were around $63. At SOL now trades above $70, the analyst expects the price to reach $95.

As mentioned earlier, this level flashes with the 1.618 Fibonacci extension level based on the H1 2021 range.

Even so, for this target to be reached, SOL buyers must flow in to sustain the momentum, keeping SOL bull bars along the upper BB.

Notably, prices are trending, bouncing off from the main support trend line.

At present, there are hints of weakness. On the last trading day alone, SOL prices are stable, recoiling after August 18 gains. Notably, Wednesday’s rally was with high trading volumes:

Is Solana Overbought?

It is the opinion of another trader on Twitter.

He observes that although prices are at record higher, there are hints of the coin being overbought after the breakout.

Specifically, the analyst points out the RSI. The technical indicator is used to gauge momentum and pick out divergences.

Presently, it is at overbought territory—above 70—coinciding with SOL’s headwinds and tapering momentum.

The trader predicts a cool-off, a development that may see SOL/USDT retrace to $40—the middle BB—a volatility indicator that’s one of the best cryptocurrency indicators around.

Cup-And-Handle Formation, SOL/USDT Can Reach $85 But Will BTC Allow?

Based on the SOL/USDT price action analysis in the 2 HR chart, one trader predicts Solana bulls to add to their longs. However, the pace of this expansion, nonetheless, depends on BTC’s performance.

Solana to $85

Vibrant Bitcoin bulls would easily pump SOL to the analyst’s target keeping in mind the direct correlation between BTC and altcoins.

At present, there is a cup-and-handle formation in the 2HR chart, a foundation that could see SOL rally to $85—a 10 percent surge—presenting an opportunity to aggressive swing traders and even scalpers.

Charts courtesy of Trading View

Disclosure: Opinion is that of the author. Do your own research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!