Solana, the now seventh-ranked cryptocurrency by market cap, thanks to a recent runaway performance, has surpassed the $40 mark. Take a look at a close-up of the price action and see if the stampede by bulls is sustainable.
Say Goodbye To Single-Digit SOL Forever
Less than one year ago, Solana hit a low of under $10. Single-digit SOL proved to be too enticing for investors to pass up and it could potentially serve as a long-term bottom.
The altcoin fended off a fierce selloff in June this year, but held above double digits. The higher low instilled confidence in the market, possibly considering it a valid retest of support.
Price then pushed higher, but failed to breach resistance at $26. That is until about two weeks ago when the Ethereum-competitor took out the resistance level and has been on a tear since. As today, it smashed above $40 and set an intraday high around $46.
The latest over 10% gains today cap off a nearly 100% rally in three weeks, and a full 400% off the lows. Anyone who was bold enough to buy SOL at under $10 has now made more than 4x on their investment.
What’s Next For Solana After Smashing Above $40?
Solana has now erased all bearish price action from the FX collapse and beyond. The latest rally touched price levels not seen since August 2022.
The altcoin broke out from a potential ascending triangle pattern three weeks ago and has climbed over 100% since. Objectives based on the measure rule of this pattern put the next target for SOL at around $90.
Above that level, it is possible that Solana could revisit former all-time highs above $260. This level was last reached in November 2021, a full two years ago.
Comparisons with Ethereum put SOL upwards closer to $1,000 if it follows the same previous bull market pathways. Solana’s stand out crypto market performance could be partially responsible for Ether’s muted rally thus far. But with Solana possibly meeting more resistance at this level, prices could take a pause for the time being, prompting impatient profits to roll back into ETH and other altcoins.
Tony is the author of the CoinChartist (VIP) newsletter. Sign up for free. Follow @TonyTheBullBTC & @coinchartist_io on Twitter. Or join the TonyTradesBTC Telegram for daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from Shutterstock, Charts from TradingView.com
