29 C
New York

SOL Price Eyes $150 After 25% Jump Over The Week: Price Analysis

Date:

The SOL price eyes $150 after a recent 25% surge over the week but it seems that the Solana-based products saw a huge capital outflow as we can see more today in our latest cryptocurrency news.

The price of Solana could increase by over 45% in the upcoming weeks as the crypto intends to complete a double-bottom chart pattern against the USD. Double-bottoms appear at an end of a downtrend when the price drops a low and rebounds to levels near the previous low. With the bears unable to push the price to a new low, the sentiment became exhausted and led to a sharp upside retracement and a breakout move afterward.

solusd
SOL/USD daily price chart featuring double-bottom and bullish divergence setups. Source: TradingView

SOL has been painting a similar pattern after extending its rebound move by increasing 25% week to date and hitting about $100. The visible bullish divergence between the price and the RSI shows a high probability of the double-bottom breakout. The bullish confirmation could come if the SOL price breaks above the double bottom neckline near the $120 level with a rise in the trading volume so it happens that the SOL upside target can be at length equal to the distance between the double-bottom pattern’s lowest point to the neckline.

This will put SOL en route to $150 with a chance of continuing the bullish move towards $170 that was marked in the red. The double-bottom envisioned SOL at $150 as a popular market analyst Capo warned the potential bull trap on the market and noted that altcoins will resume their downtrends. The analyst also presented $120 as a double-bottom neckline as a solid resistance level that can limit the SOL upside retracement and he also applied the popular Elliott Wave Theory to show a start of a new bearish wave cycle:

ADVERTISEMENT

“It’s impossible to me to be bullish here, after the break of all the bullish MS + correctives moves to the upside. You can enjoy the LTF pumps while they last, but don’t get too comfy.”

solusd
SOL/USD daily price chart. Source: CapoTradingView

The bearish outlook lined with the Coinshares report published last week showed the most altcoins investment vehicles seeing a negative investor sentiment like BNB, DOT, XRP, ADA, and LTC. Solana also suffered as the week ended in february and saw SOL investment products losing $2.6 million in capital outflows. All of the digital asset investments products combined gathered $36 million in the same period.

ADVERTISEMENT

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Related articles

spot_img

Recent articles

spot_img