Solana
Solana Mirrors 2021 Bullish Pattern, Crypto Analyst Reveals
An analyst explained how Solana (SOL) is currently reflecting the same pattern that led to a bullish breakout in its price in 2021.
Solana seems to be showing a similar trend to 2021 right now
In a new job On X, analyst Ali Martinez explained how the pattern recently forming in SOL is reminiscent of what the cryptocurrency exhibited in July three years ago.
Below is the chart shared by the analyst, which highlights the similarity between the two periods:
As the chart shows, the 3-day Solana price has so far shown a similar trajectory to that of 2021. Moreover, the current price Relative Strength Index (RSI) is also about the same level as it was back then.
The RSI is a technical analysis (TA) indicator that basically measures the speed as well as the magnitude of recent changes occurring in the price of SOL. This momentum indicator is generally used to determine whether the price of the asset is fair or not.
When the indicator has a value above 70, it may indicate that the cryptocurrency is overvalued because its price is increasing too quickly. Therefore, corrections may become more likely in this region.
On the other hand, a value below 30 implies that a possible oversold condition is forming in the asset, meaning that a bottom could be likely to form in its price.
From the chart, it is visible that the RSI is currently around 40 for Solana, suggesting that the asset is slightly undervalued. Interestingly, in 2021, this same RSI level led to a strong bullish breakout for the cryptocurrency.
Given that the coin’s price has followed a similar trajectory back then and its RSI has also remained pretty much the same, it is possible that a new surge for Solana could start from here. It now remains to be seen whether the past pattern will repeat itself for the asset or whether it will follow a completely new path.
In other news, a SOL whale made a massive move on the blockchain just a few days ago, according to data from cryptocurrency transaction tracking service Whale Alert.
The transfer, which involved the transfer of 287,019 SOL (equivalent to over $40.3 million at the time the transaction was executed), was made from an unknown wallet, likely the whale’s personal address, to an exchange: Binance.
So, given the direction it’s going, it’s possible that this huge holder made this deposit for the purpose of selling. Shortly after the move, the asset’s price dropped towards the $128 mark, suggesting that the whale played a role or at least anticipated the drop. Regardless, Solana has already recovered from the drop.
SOL Price
At the time of writing, Solana is trading around $141, down more than 8% from last week.
Featured image from Shutterstock.com, whale-alert.io, charts from TradingView.com