The value of Solana (SOL) could rise by over 45% within the coming weeks because the cryptocurrency intends to finish a double-bottom chart sample in opposition to the US greenback.
A $150 SOL forward?
Double-bottoms sometimes seem on the finish of a downtrend when the value falls to a low, rebounds, and returns to the extent close to the earlier low. With bears unable to push the value to a more recent low, the promoting sentiment turns into exhausted, resulting in a pointy upside retracement and a breakout transfer afterward.
SOL has been considerably painting a similar pattern since Jan. 24, particularly after extending its rebound transfer by rising 25% week-to-date to achieve above $100.
Moreover, a visual bullish divergence between SOL’s worth and relative power index developments signifies a excessive likelihood of a double-bottom breakout.
Nonetheless, a bullish affirmation may come if SOL’s worth breaks above the double-bottom neckline close to $120 with an increase in buying and selling quantity. Because it occurs, SOL’s upside goal might be at size equal to the utmost distance between the double-bottom sample’s lowest level and its neckline.
That will put SOL en path to at the very least $150, with a chance of continuous the bullish transfer towards $170, marked in pink within the chart above.
As double-bottom envisioned SOL at $150 or above, well-liked market analyst Capo warned about a potential bull trap within the Solana market, noting that altcoins, on the entire, would resume their downtrends.
The pseudonymous analyst offered $120, the double-bottom neckline, as a strong resistance stage that will probably limit SOL’s ongoing upside retracement. He additionally utilized the favored Elliott Wave Idea to trace concerning the starting of Solana’s subsequent bearish wave cycle, as tagged with “c” within the chart beneath.
“It’s unimaginable to me to be bullish right here, after the break of all of the bullish MS + correctives strikes to the upside,” Capo said on March 1, including:
“You’ll be able to benefit from the LTF pumps whereas they final, however don’t get too comfortable.”
The bearish outlook lined up with a CoinShares report revealed final week confirmed most altcoin-based funding autos witnessing unfavorable investor sentiment, together with BNB, Polkadot (DOT), Cardano (ADA), XRP and Litecoin (LTC).
Solana additionally suffered because the week ending Feb. 25 noticed SOL funding merchandise shedding $2.6 million in capital outflows.
In distinction, all of the digital asset funding merchandise mixed attracted $36 million in the identical interval, with multi-asset portfolios injecting the very best capital — of $14 million, adopted by Bitcoin’s (BTC) 17.3 million.
The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a choice.