Originally published on: September 30, 2024
The cryptocurrency community is buzzing with excitement as Solana’s SOL/BTC pair shows bullish signs. With many considering Solana to be an Ethereum killer, comparisons between the two were inevitable, especially after Ethereum recently hit a three-and-a-half-year low against Bitcoin. The big question on everyone’s mind is whether Solana will maintain its position against Bitcoin or face a similar fate to Ethereum.
Analysts are split on what’s in store for Solana next. Some believe a price decrease is on the horizon, while others are more optimistic, suggesting a breakout could be imminent. Notably, veteran trader Peter Brandt hinted at a potential “sizable advance” for Solana if it manages to hold the $120 support.
According to a report from VanEck, Solana could reach $330, climbing to 50% of Ethereum’s current market capitalization. However, the report pointed out that institutional investors have been slow to recognize Solana’s potential, possibly due to their reluctance to move away from established coins like Ethereum.
Despite its promising outlook, Solana faces stiff competition from emerging networks vying to dethrone it as the top challenger to Ethereum. One such competitor is the Sui Network, identified as a potential rival to Solana.
So, the big question remains – will Solana continue to shine against Bitcoin, or will it follow in Ethereum’s footsteps? Let’s delve into the SOL/BTC charts to uncover the answer.
The SOL/BTC pair has taken the shape of a symmetrical triangle, typically seen as a continuation pattern. With the price trending higher prior to the triangle’s formation, the likelihood of a breakout is significant. However, the flat 20-week exponential moving average (0.0023 BTC) and the relative strength index (RSI) approaching the midpoint don’t provide a clear advantage to either the bulls or the bears.
If bullish momentum prevails and the price stays above the 20-week EMA, the SOL/BTC pair could aim for a breakout above the resistance line. A successful breakout could propel the pair towards 0.0031 BTC and potentially even 0.0039 BTC.
On the flip side, a move below the triangle could lead to a decline to 0.0018 BTC and 0.0013 BTC in the short term.
While the direction of the breakout remains uncertain, it’s best to wait for it to occur before making any significant investment decisions.
Keep in mind that this article does not constitute investment advice, and readers should conduct their own research before making any financial decisions. Stay tuned as Solana’s performance against Bitcoin continues to unfold in the crypto market.
