Cryptocurrencies

Here’s why the Solana Price could double By the end of the year

Published by

Written By: Elliott Laybourne

Oct 19, 2021, 06:13 BST 06:13

Summary:

Although the Solana price has been consolidating following September's all-time high, the long term uptrend says more gains are ahead.

Although the Solana price has been consolidating following September’s all-time high, the long term uptrend says more gains are ahead. Solana (SOL/USD) is trading at $158.69 (+1.00%), up 12.30% in October and +9,940% year-to-date. SOL currently has a market capitalization of $47.6 Billion, ranking it as the 7th-most valuable cryptocurrency, behind Ripple.

Solana is a Decentralized Financed (Defi) protocol that combines Proof-of-Stake (PoS) and Proof-of-History (PoH) consensus to enhance scalability, which has attracted considerable investor interest this year. The native SOL token has been on a blistering bull run in the last three months, surging from $22 in July to $222 in September. However, Bitcoins run to $62k, has pulled money from altcoins over the last month. As a result, the Solana price has consolidated in a narrowing triangle pattern since the September high. However, despite the SOL token retreating around 25% in the last four weeks, the long-term view remains constructive.

SOL Price Analysis

As we see on the daily chart, Solana has been trending higher in a rising channel for over a year. Furthermore, the recent consolidation has formed a concise ascending triangle pattern which is considered a bullish formation. Technically, if the SOL token clears the top of the triangle at $170, it should target the long-term trend resistance at $330, around 110% above the latest price.

On the flip side, if Solana drops below the lower edge of the triangle at $136, it could encourage short-term bearish momentum. In that event, the 100-day moving average at $99.92 becomes a logical target. Below that, a rising trend at $85.00 offers critical support. As long as Solana remains above $85.00, I consider the structural bull market intact. Therefore, I expect to see buying on any dip towards $100. As long as Solana respects the rising trend channel, I maintain a long term bullish price outlook. Therefore, if the SOL token drops below $85.00, it will invalidate this thesis.

Solana Price Chart (Daily)

For more market insights, follow Elliott on Twitter.

This post was last modified on Oct 19, 2021, 06:13 BST 06:13

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.