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The price of Bitcoin may be disheartening, but demand for some altcoins remains relatively strong. There is a target of $40 on the horizon for a popular cryptocurrency, and if it can achieve this, it may once again shine as one of the top altcoins of 2021. For many, price is the most important factor, and such a rise seems necessary for increasing popularity.
Solana (SOL)
Solana‘s price has significantly increased since June 10th. This upward movement has resulted in a breakout from both diagonal and horizontal resistance levels. This breakout indicates a strong start to a new upward trend. The price action and various indicators provide additional evidence to support the continuation of the upward trend for SOL in the near future.
For example, when we examine the weekly chart, we can see a significant breakthrough that occurred two weeks ago. During this breakthrough, SOL crossed above a declining resistance line that has spanned 600 days since November 2021.
Such breakouts often indicate the end of the previous trend and the beginning of a new trend in the opposite direction.
SOL Coin Analysis
The reading on the weekly chart suggests that the downtrend may have reversed. This idea is further supported by the presence of four bullish candlesticks observed since the lowest levels in June. However, the SOL price failed to close above the $27 horizontal area. This created a long upper wick, which is considered a sign of selling pressure.
Looking at the RSI, we can see that it supports the recent breakout. The daily chart stands out with the breakout of a descending resistance line that has been in place for 81 days. This movement further supports the narrative of a new trend beginning.
As long as Solana’s price maintains the $26 support level, this narrative may remain valid. On July 14th, SOL reached its highest level of the year at $32.13, so if we see the start of a second rally, it is likely that the price will reach a new peak in the range of $38-40.
However, a close below $26 could invalidate the breakout, and in that scenario, we would see the price drop to the $20 region.
