Solana’s SOL coin rallied increased on Oct. 21 as merchants shifted focus from Bitcoin (BTC) to essentially the most promising altcoins.
Notably, the value of SOL elevated by greater than 11% to over $196 a token, the very best degree since Sept. 11. Mixed with the positive aspects recorded within the earlier 36 hours, SOL was up by as a lot as 26%.
SOL/USD every day worth chart. Supply: TradingView
Capital rotation in play?
A brand new Bitcoin all-time excessive worth on Oct. 20 triggered worth rallies throughout the altcoin market as nicely.
As an illustration, Ethereum’s native Ether (ETH) token posted higher intraday income on Oct. 20, closing 7.32% increased 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 greater than 3.5% to beneath $65,000. In consequence, the ETH/BTC alternate surged by greater than 5% to succeed in an intraday excessive of 0.06289 BTC.
Equally, SOL’s efficiency in opposition to 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, displaying that merchants rotated capital out of the Bitcoin market to enter the Solana market.
SOL/BTC every day worth chart. Supply: TradingView
Bullish pennant triggered
Solana’s newest worth 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 greater than 200% within the August–September interval. In consequence, the formation of greater than two increased 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 regardless of SOL worth down 40% since final week
Since a pennant is often a pattern continuation indicator, their formation on the SOL chart after a large worth rally raised its prospects of sending SOL costs increased. 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 every day worth chart that includes a bullish pennant. Supply: TradingView
In different phrases, the value goal for SOL may very well be as excessive as $250 earlier than the top of the month. Nonetheless, a retest of the pennant’s higher trendline as assist would danger invalidating the bullish setup.
The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes danger, and you need to conduct your individual analysis when making a call.