Solana (SOL) has blasted-up +25% in an impressive pump, as crypto markets come alive following bullish Bitcoin price moves to the $31,000 level – but with Solana rising, is it too late to buy SOL?
Indeed, Bitcoin’s strong performance so far this week – fuelled by positive sentiment surrounding the likely upcoming launch of Bitcoin Spot ETFs has catalyzed major market moves.
And Solana hasn’t been left behind as price action returns to levels last seen on July 14.
Following the dramatic move, top trader Pentoshi has predicted a brief consolidation period at current levels, before upside action resumes.
SOL Price Analysis: Is it Too Late to Buy Solana After +25% Price Blast?
As the price pushes up to July levels, Solana is currently trading at a market price of $32.07 (representing a 24-hour change of +0.59%).
This comes amid a strong technical structure for SOL, which undertook an impressive bounce from converged 20DMA and 200DMA support on October 12 – following the emergence of a golden cross pattern on the chart.
A rapidly ascendant 20DMA gave immediate footing to the initial stages of the rally move, with SOL successfully testing the 20DMA for support on October 16 and October 19.
With double-tested supported, firm footing launched SOL +37.5% to current levels – smashing the previous descendant trading channel.
Historic resistance at $32.35 has seen the Solana rally stall, and this coincides with a substantially overheated RSI – which currently has an oversold signal at 82.70.
The MACD on the other hand continues to reflect the bullish momentum at 0.918, suggesting that while technically oversold – buy pressure remains strong.
Overall, SOL appears to be stood atop an impressive run here – emboldened by Bitcoin’s moves, but facing a potential consolidation and retracement due to historic resistance.
To the upside, Solana has a short-time frame target here at $34.45 (a possible +8.25%).
While downside price action could see Solana tumble down to lower support at $27.20 (a potential -14.53%).
Solana therefore carries a short-time frame risk: reward ratio of 0.57 – almost double the downside risk.
source: cryptonews.com
