Solana has been one of the best-performing assets in the crypto 10 top by market pairing Ethereum’s wins during the weekend. The cryptocurrency has persevered some of its past week’s gains but records some hurdles over the past 24 hours.
At the time of writing, Solana (SOL) trades at $44.5 with 1% losses over the past day and 10% profits in the past 7 days. In this timeframe, only Ethereum (13% profits) and Dogecoin (13% profits) record better performance.
Despite the short-term downside price action, crypto analyst Justin Bennett believes SOL’s price is on track to register a massive increase. This big move to the upside could play out over the course of the coming months and push Solana’s price into a 40% move to the upside.
According to Bennett, SOL has drawn a triangle pattern over the past months. The price of Solana has been moving to the upper side of this triangle which should operate as critical resistance north of SOL’s current levels.
In the daily chart below, and as stated by the analyst, the upper side of this triangle pattern can be traced to 2021 as SOL moved into its all-time high. As the price of Solana began a descending price action, the cryptocurrency found support along that line and saw a major breakdown once SOL trended below it.
Now, the price is attempting to break above this triangle which could lead to further appreciation. Bennett stated the following on why SOL’s price and the entire crypto market are at a crucial point:
The thing with a pattern like this is that isn’t inherently bullish or bearish. Yes, we are in a larger downtrend so you have to pay attention to that but ultimately we are waiting for the market to breakout here, to make up its mind on weather it wants to move higher or lower (…). Right now we are in a wait and see mode for Solana.
Solana On Low Timeframes, What Could Trigger More Losses In The Coming Days?
The analyst claims that $40 is going to be a critical level for SOL’s price. At this price point, the cryptocurrency has seen high levels of trading volume which make it a necessary level to hold to prevent more losses.
If the SOL’s price is pushed downwards, $32 and $27 should operate as additional support levels. Market participants will get more clues about SOL’s price potential rally or re-test of these support levels if Solana closes a daily candle above or below $40. The former spells bullishness, and the latter hints at more losses.
In the short term, the crypto market could see some hurdles from a stronger U.S. dollar. The currency trend to the downside during late July allows risk-on assets to see some relief but seems to be trying to reclaim the top of an important trendline, according to Bennett.
The $DXY is trying to reclaim the channel it lost on the 10th.
Not a good sign for #crypto. pic.twitter.com/kxVmS6NhPY
— Justin Bennett (@JustinBennettFX) August 15, 2022
Credit: Source link
