- SOL’s price and RSI movements clearly show a bullish divergence.
- While it’s not a certainty, SOL might continue its upward trajectory toward $170.
A 45 percent price increase for Solana (SOL) is likely shortly as the cryptocurrency looks to complete a double-bottom chart pattern versus the US dollar. When a price declines to a low, then rises and returns to a level around the prior low, we have a double bottom. With sellers having exhausted their options, the price makes a quick upward retracement before launching a fresh upward rise.
Bulls Ready for Another Rally
Even with a 25 percent week-to-date increase to over $100, SOL has portrayed a similar picture since Jan. 24. In addition, SOL’s price and relative strength index (RSI) movements clearly show a bullish divergence, which implies a strong possibility of a double bottom breakout.
A positive confirmation might occur if SOL’s price breaks above the double-bottom neckline at $120 with a significant increase in trading activity. SOL’s upside goal might be equivalent to a maximum distance equal to the maximum distance between the bottom of the double-bottom pattern and its neckline.
While it’s not a certainty, SOL might continue its upward trajectory toward $170, highlighted in red on the accompanying chart. At $150 or higher, prominent crypto analyst Capo cautioned that Solana might face a bull trap since cryptocurrencies, as a whole, were expected to continue their downward path.
Using $120, the double-bottom neckline, the anonymous analyst predicted that SOL’s upward retracement would most likely be halted at $120. He also predicted the beginning of Solana’s next bearish wave cycle using Elliott Wave Theory. According to CoinMarketCap, the Solana price today is $101.77 USD with a 24-hour trading volume of $3,611,794,335 USD. Solana is up 1.99% in the last 24 hours.
