Originally published on: September 30, 2024
Solana supporters have long touted the blockchain as a potential “Ethereum killer,” setting the stage for comparisons as Ethereum struggles against Bitcoin. The big question now is whether Solana will stand strong against Bitcoin or follow a similar path to Ether’s recent decline.
As analysts debate Solana’s next move, speculation abounds. While some foresee a price drop, others anticipate a potential breakout. Seasoned trader Peter Brandt recently suggested that Solana’s ability to maintain the $120 support level could set it up for a significant upward trend.
Interestingly, investment firm VanEck is optimistic about Solana’s prospects. In a recent report, they projected a price target of $330 for Solana, envisioning it capturing 50% of Ethereum’s current market capitalization. Despite this positive outlook, institutional investors seem slow to recognize Solana’s potential, possibly due to their attachment to established cryptocurrencies like Ethereum.
Meanwhile, looming in the background is the threat of emerging competitors like Sui Network, which could challenge Solana’s position as a top alternative to Ethereum.
To gain insight into Solana’s future trajectory against Bitcoin, let’s delve into the SOL/BTC charts.
Currently, the pair has formed a symmetrical triangle pattern, typically indicating a continuation of the current trend. With a recent upward trend preceding the pattern, a breakout scenario seems plausible.
However, the relatively flat 20-week exponential moving average and the RSI hovering around the midpoint present a mixed picture, offering no clear advantage to either buyers or sellers.
If buyers manage to keep the price above the 20-week EMA, the SOL/BTC pair could aim for a breakout above the resistance line. Success in this scenario could propel the pair towards 0.0031 BTC and ultimately target 0.0039 BTC.
Conversely, a downward turn leading to a break below the triangle could drive the pair down to 0.0018 BTC and possibly even 0.0013 BTC.
With the price oscillating within the triangle, buyers look to push it towards the resistance line, while sellers are poised to intervene. A bounce off the 20-day EMA following a rejection at the resistance line could signal a potential breakout.
However, a downward reversal breaking below the moving averages could indicate a prolonged consolidation within the triangle, favoring bearish sentiment upon a support line breach.
Given the uncertainty surrounding the breakout direction, it’s advisable to await confirmation before making significant trading decisions.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any investment decisions.
