It’s been a long time coming, but Solana (SOL) is finally making a decent move to the upside. How high can this $SOL pump go? Is $SOL about to take over the reins from Bitcoin (BTC) and Ethereum (ETH)?
The short-term chart for $SOL reveals a nice rise inside an ascending wedge, which has taken out the $184 resistance. However, caution should certainly be employed from here. Given that the price has reached the top of the wedge, and the indicators on the Stochastic RSI are at the top, this could be an ideal place for a pullback.
Whether the pullback will just take the price back to the bottom of the wedge, and the $184 resistance level, in order to confirm this as support, remains to be seen.
The daily chart illustrates that an all-important higher high has just been made by $SOL bulls. However, it does look more obvious in this time frame that a retest of $184 will need to take place before the price can go higher. The indicator lines for the Stochastic RSI may come back down to the 80.00 level at least, and could then bounce back up again, signalling continued buying.
Zooming much further out into the 2-week view, this chart looks excellent for the longer term prognosis for $SOL. All looks as though it hinges on $SOL bulls being able to claim the $184 resistance level as support. If they can do so, a W chart pattern would be likely to play out, potentially taking the $SOL price above the last $252 resistance.
Finally, if one looks at the SOL/ETH chart, could a turnaround be about to take place? $ETH has dominated in a big way over the last several weeks, with a 43% increase in its ratio to $SOL. Is this turnaround currently taking place, or is $SOL just confirming the breakdown of the broadening wedge?
The fact that the indicator lines in the Stochastic RSI may be about to flip bullish for $SOL is a potential big factor in the $SOL bulls’ favour. Also, around 75% of all crypto transactions are taking place on the Solana network, whilst a much smaller percentage is on the Ethereum network or its layer 2s. Faster and cheaper, to a huge extent, may be what wins out for Solana over the longer term.
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