Solana gains over 26% in two days — $250 SOL price target next?

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Solana’s SOL coin rallied larger on Oct. 21 as merchants shifted focus from Bitcoin (BTC) to probably the most promising altcoins.

Notably, the worth of SOL elevated by greater than 11% to over $196 a token, the best degree since Sept. 11. Mixed with the beneficial properties recorded within the earlier 36 hours, SOL was up by as a lot as 26%. 

SOL/USD each day value chart. Supply: TradingView

Capital rotation in play?

A brand new Bitcoin all-time excessive value on Oct. 20 triggered price rallies across the altcoin market as effectively.

As an example, Ethereum’s native Ether (ETH) token posted better intraday profits on Oct. 20, closing 7.32% larger round $4,170. On Oct. 21, the second-largest cryptocurrency rallied additional to $4,374, simply $10 shy of its report excessive at $4,384 on Coinbase.

Conversely, Bitcoin corrected by more than 3.5% to below $65,000. Because of this, the ETH/BTC alternate surged by greater than 5% to achieve an intraday excessive of 0.06289 BTC.

Equally, SOL’s efficiency towards the U.S. greenback during the last two days got here out higher than Bitcoin. That prompted SOL/BTC to climb by greater than 8% on Oct. 21 to hit 0.0026772 BTC, exhibiting that merchants rotated capital out of the Bitcoin market to enter the Solana market.

SOL/BTC each day value chart. Supply: TradingView

Bullish pennant triggered

Solana’s newest value rally additionally appeared as a bullish breakout out of its multi-month consolidation channel.

SOL began consolidating sideways inside a triangle-like buying and selling vary after rallying by more than 200% within the August–September interval. Because of this, the formation of greater than two larger lows and decrease highs, coupled with a declining commerce quantity, raised the prospect of the channel being a pennant.

Associated: Solana chart ‘bull flag’ eyes $250 despite SOL price down 40% since last week

Since a pennant is usually a pattern continuation indicator, their formation on the SOL chart after a large value rally raised its prospects of sending SOL prices higher. Thus, the breakout from Oct. 20 now eyes an prolonged run-up, with its goal sitting at a size equal to the scale of the earlier uptrend.

SOL/USD each day value chart that includes a bullish pennant. Supply: TradingView

In different phrases, the worth goal for SOL could possibly be as excessive as $250 earlier than the tip of the month. Nevertheless, a retest of the pennant’s higher trendline as help would threat invalidating the bullish setup.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer includes threat, and it is best to conduct your personal analysis when making a call.