As Bitcoin ($BTC) and the whole of crypto nears a pivotal point, the next upward leg of the bull market could be about to take place. If the possible bearish scenarios can be avoided, the altcoins can start to rise. Solana ($SOL) is primed to lead this next potential surge.
Solana ($SOL) in best position to lead the field
Bitcoin ($BTC) has reached a pivotal moment, and the next move could either lead to new all-time highs, a prolongation of the current sideways trajectory, or a dip that could even take the price back down to $73,000.
With most short-term Stochastic RSIs near, or at the bottom, an upturn of these indicators can certainly provide the required upside momentum.
Among all the bigger altcoins by market cap, $SOL is possibly in the best position to lead the rest of the field out of the current downturn. With most transactions now taking place on the Solana blockchain, and the full implementation of the ground-breaking Firedancer validator client still to come, the $SOL price could be about to reverse its current correction and move a lot higher.
Bitcoin Dominance breaking down
Source: TradingView
First of all, when coming to a decision on whether the altcoins can make some headway, it is important to look at the Bitcoin Dominance chart (BTC.D). This is showing that the price is starting to consolidate below the ascending wedge. If this continues, and dominance makes a lower low, the uptrend can be broken.
$SOL on the way to a trend break
Source: TradingView
The short-term chart for $SOL shows how the price had been making lower highs and lows. Even the major support at $202 was broken, and it wasn’t until the price hit the next major support at $174 that the bulls were able to turn things around. That said, they still have a way to go.
The next descending trendline needs to be broken to the upside, and it’s only if $SOL gets back above $202, flipping it once more into support, that the downtrend can be reversed.
Why $SOL can lead the next altcoin surge
Source: TradingView
Nevertheless, it’s on the weekly chart where the possibilities for $SOL can be fully understood. Staying above the trendline, and breaking the $202 resistance level is paramount, but it’s at the bottom of the chart from where bulls can take their inspiration.
The indicators on the weekly Stochastic RSI are almost at the bottom. This is a more advanced state than for any other major altcoins, and is the reason why $SOL can rise first, as the full thrust of momentum gets under the price and forces it higher.
There is still some way to go, but it looks like the indicator lines should bottom by the end of this week, and the first angling upward could even take place the following week.
$SOL has also recently bounced from the bottom of a bull flag, plus from major support, for its $BTC pair (SOL/BTC). If $SOL can go on to break through the top of this bull flag, there won’t be much that can stop the $SOL price from rocketing over the final stage of the bull market. Keep all eyes peeled on this one.
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.
