Is Solana (SOL) Poised for a Breakout? Price Analysis

The crypto market is stirring early on Thursday. Solana (SOL) is one of the leading gainers, up 4.6% on the day so far. Is $SOL poised for a breakout, and could this be the start of a huge rally into the end of this year and perhaps beyond?

When analysing the price of any altcoin it is imperative to also examine the Bitcoin price. If Bitcoin is not looking good, the altcoins are not going to do too much. There are signs that $BTC may be coming into a strong rally. If this is the case, $SOL is likely to be one of the front-running altcoins.

Trendline break in sight for $SOL

Source: TradingView

The $SOL price is still traversing inside a descending channel. This pattern will generally break to the upside. Also in favour of the $SOL bulls is a major trendline which the price has respected since early April this year. Add to this the strong horizontal support at $176 from where the price has also bounced from, and one has a recipe for some potentially good upside price action from here.

Currently at a horizontal resistance level, if the bulls can break through here the next target would be a breakout of the descending trendline. The Stochastic RSI indicators are pushing up and are signalling the momentum that could take the price through these barriers.

Huge support under the $SOL price

Source: TradingView

The daily chart for the $SOL price brings in another element that is also providing strong support and that is the 200-day simple moving average (SMA). If ever the $SOL price had strong support, it’s right here. Price normally goes up from such a secure base, so expect $SOL to do just that.

The Stochastic RSI indicators are heading up, bringing good momentum into the price, and at the bottom of the chart the RSI indicator looks as though it is just about to break through the downtrend line. This is likely to be imitated in the price action.