One of the leading altcoin gainers in this bull market so far, the $SOL price has been in a long period of accumulation since early this year. Back at a very important horizontal support level, is $SOL gearing up for a massive breakout?
$BTC and Breakpoint conference catalysts for $SOL price
When talking about the chances of any altcoin exploding higher, unless there is some excellent fundamental news, much, if not all, will depend on how Bitcoin is doing. If $BTC is ready to explode higher, the best fundamentals altcoins will probably follow.
That said, Solana has its Breakpoint conference coming up this coming weekend, and rumour has it that at least three major pieces of news will be dropped at the event. The $SOL price normally rallies into the event, but this year the expected surge has still not materialised.
That said, the $SOL price is still holding above what is now the huge support level of the 0.618 fibonacci, at $129. If $BTC can get back to its previous local high at just over $65,000, and surpass it, the bull market could be back on, and the altcoins can start to run.
$SOL on the way back up
Source: TradingView
Looking at the short term time frame for $SOL, it can be seen that the price came down by way of a descending channel, to the bottom of the range support (horizontal black line). After finding that bottom once again, an ascending channel is helping the price to climb higher.
At the bottom of this ascending channel now, it might be expected that the price continues back to the top trend line.
Breakout point is not far above $SOL price
Source: TradingView
Zooming out into the daily time frame, it can be observed that the descending trend line isn’t far above the price. A breakout here could signal some strong upside price movement. The 200 day exponential moving average (EMA) is just above (red line), also helping to reject the last upward move.
Positive macro chart for $SOL
Source: TradingView
That said, when one zooms out into the weekly time frame, the possibilities for $SOL upward price movement become more apparent. The strong support of the parallel channel bottom is very important. Another strong horizontal support is below this at $79.
If the $SOL price can break back to the top of the range, a breakout could occur beyond that, which can potentially take $SOL back to the all-time high of $260.
Looking at the bottom of the chart, the Stochastic RSI appears to be bottoming. When the two indicator lines move back up and cross over the 20 level, this can signal the strong upside momentum to take $SOL back to that all-time high and beyond.
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.
