Solana (SOL) is becoming the Ethereum of this bull market. Up 30% against its USD pair since early October, $SOL is the gains leader among the top 50 cryptocurrencies by market capitalization. With a breakout against its $BTC pair imminent, and fast pulling away from $ETH, $SOL could be the frontrunner for the next stage of this bull market.
SOL/USD inverse head and shoulders can take $SOL back to $202
Source: TradingView
The $SOL price (SOL/USD) is looking very good right now. Last week $SOL was not only able to break out of the triangle chart pattern, but also flipped the strong resistance at $161 into support, with a candle body close above this level.
Into the bargain, an inverse head and shoulders pattern is playing out. If it continues to its measured move of $202, this would exactly coincide with the last candle body local high. To add to this, the weekly Stochastic RSI is inclined upward, signalling a large amount of momentum which is boosting the price.
SOL/BTC on verge of breakout
Source: TradingView
Altcoins that consistently outperform Bitcoin (BTC) are few and far between. That said, Solana (SOL) is one of them. The $SOL price (SOL/BTC) is on the verge of a breakout from a massive triangle against the king of the cryptocurrencies. Should this take place with a confirmation above, this could set the scene for a huge outperformance of $SOL over $BTC for the last stage of this bull market.
As can be seen in the above chart, there is still overhead resistance at around 0.0030 sats. $SOL will also need to break above this. Once again, the weekly Stochastic RSI momentum indicator is very much in $SOL’s favour.
SOL/ETH in price discovery
Source: TradingView
However, Solana is not in competition with Bitcoin – they do very different things. In contrast, both Solana and Ethereum are smart contract layer 1 networks. Ethereum is still easily the leader from a security perspective, but it is slow, and unable to scale, while its layer 2s are hiving off the fees, as if cannibalising the layer 1.
Solana is the newer technology that can produce the speed and scalability needed for today’s finance needs, with exceptionally lower fees and no need for any layer 2s.
The (SOL/ETH) chart above shows how $SOL has broken out of the range and is now in price discovery against its $ETH pair. Although still a quarter the size of $ETH by market capitalisation, $SOL is catching up fast. If the Firedancer validator client is successful, $SOL could get a lot closer to $ETH, and even overtake it, perhaps in the next bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
