With Bitcoin (BTC) potentially looking set for an impending correction, Solana is riding high. Up 15.6% already this week, the leading layer 1 could be in the midst of a huge breakout. How high can $SOL go?
$SOL bursts through resistance and ascending trendline
Source: TradingView
The weekly chart for the $SOL price is quite a mouth-watering one. Not only has the price burst through the $220 resistance, potentially turning it into support at the end of this week, but it has also pierced through the ascending trendline which stretches back to May this year.
As can be seen in the chart, the last major resistance is the top of the weekly candle closes back in November 2024 and January 2025 respectively.
At the bottom of the chart, the Stochastic RSI indicators are nearly topped out, but there is a little way still to go before they reach their limit, and there’s nothing to stop the indicators continuing to bounce along the top for an extended period of time.
Very high time frame shows $SOL about to close above all major supports
Source: TradingView
The very high time frames are not used by traders, and even longer term investors may not often refer to them. The 2-month time frame chart above makes for very interesting viewing. It shows that the main support/resistance level for this time frame is in fact the $200 level. It can also be observed that this 2-month candle is already way beyond this level, basing off of it as major support.
Fibonacci extension levels taken from the 2021 top down to the 2022/2023 bottom give the 0.786 Fibonacci level as corresponding with the major support, while the extension level out to 1.618 shows a target of $414.
SOL/BTC approaches multi-year downtrend line
Source: TradingView
Finally, the reason for holding an altcoin in the longer term is if it is out-performing $BTC. The weekly chart above for SOL/BTC shows that a big W pattern has sent SOL/BTC towards the multi-year descending trendline. If SOL/BTC can burst through this, and reverse the downtrend by making a higher high above 0.003 BTC, who knows how far the $SOL price could go over this final stage of the bull market.
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.
