Solana is built for speed and scalability, two qualities that define a perfect launching platform for an ambitious DeFi project.
For the success of any open finance protocol depends more on the base layer and fees, project creators have been increasingly opting for Solana.
Unlike Ethereum, the blockchain can process up to 50k transactions per second while remaining decentralized and secure.
Solana Market Performance and Price Status
The value proposition of Solana explains why the project is now worth over $72.5 billion and SOL/USDT prices trending at near all-time highs.
Reading from the candlestick arrangement of the SOL/USDT on the daily chart, it is evident that Solana buyers have the upper hand.
For example, despite the losses of early last week, SOL prices are back to trend above the primary multi-week support trend line.
There is a three-bar bullish reversal pattern making up the bull flag suggesting strength and rejection of lower lows. A follow-through confirmation of the November 13 bull bar will cement Solana buyers’ conviction. In turn, this will form a solid base for a potential leg up towards $260—the all-time high.
If SOL bulls clear this mark, prices will continue once more trend in new territory in price discovery. On the flip side, SOL buyers must absorb selling pressure and sustain prices above the critical $220 level.
Losses below this mark may see SOL/USDT crater. As such this will draw in more sellers and critics who are convinced that the token is oversold, overextended to the upside, and a correction might be inevitable.
In case of a retracement from around the all-time highs, SOL may drop to October 2021 lows of $140—a 40 percent free-fall from the spot level.
Solana will Rise before Falling to $160 in a Bull Trap
On Twitter, one trader is bullish on Solana expecting the coin to surge above $260 to $280.
— ZomlotCrypto🚀🚀🚀 (@ZomlotCrypto) November 15, 2021
Even so, while SOL/USDT will expand to new all-time highs in a breakout pattern above the bull flag, SOL bears, in his preview, will flow back down.
He predicts that the token will drop by over 90 percent to $160 in a bull trap pattern when this happens.
Based on the above, the $160 mark is around October 2021 or Q4 2021 lows—a crucial support level.
Although the preview could hold, a high volume close above $260 might dictate the rapidity of the uptrend and strength of buyers. Subsequently, this will damp down the chances of a cool-off and disintegration towards October lows.
SOL is programmed for $300
All the same, not every trader think SOL prices are peaking. Instead, on Twitter, another trader is bullish, adamant that SOL/USDT prices are going for $300.
— Cryptoworld (@Crypto69ine) November 14, 2021
The surge to the upside, nonetheless, first depends on the reaction at $260—the immediate resistance line and SOL’s peaks.
From the Fibonacci extension level of the H2 2021 trade range, $400 is the next tentative target for SOL bulls. It is a level flashing with the 1.618 level. Therefore, if SOL bulls break above $260, it might float above $300 to $400 in the medium term.
SOL/USDT Cup-and-Handle Formation
On Trading View, one trader notes that the SOL/USDT price pattern has a cup-and-handle formation—which is bullish.
The rejection of bears at $220 represents a strong region of support, confirming gains above the cup. From this pattern, SOL prices, the analyst says, might soar to $320—above November 2021 highs—in continuation of the primary trend.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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