Different technical analysis indicators of the financial market show that the Solana Cryptocurrency (SOL) could be on the verge of a bullish cycle if it manages to break historical resistance.
In the last 30 days, SOL’s price rose more than 15% and its price is above the $172 line.
As seen in the following graph of TradingViewthe native cryptocurrency of Ethereum-killer-programs-aplicaciones-memecoins/” target=”_blank” rel=”noreferrer noopener”>Solana ecosystem faces historic resistance in the area of the $175, after leaving $150 behind, in mid-September.
SOL price struggles to break historical resistance. Fountain: TradingView.
The purple rectangle, meanwhile, refers to the lateralization period in which SOL did not follow a clear upward or downward trend, but rather remained in a relatively narrow range, between the resistance and support zones.
In trading, resistance is understood as the price level that a digital asset cannot easily overcome. Due to market psychology, these levels tend to repeat themselves over time in the history of the same asset, as is the case with SOL. At the same time, it is worth noting that Levels that were once resistances later become supports.
As explained in Criptopedia (educational section of CriptoNoticias), the Bitcoin/” target=”_blank” rel=”noreferrer noopener”>endurance It occurs for reasons of market psychology because traders sell at that level, understanding that the price of the cryptocurrency is high. That is what generates a fall or brake on the bullish movement..
In other words, it is a supply level at which investors increase their profit taking by selling the asset they accumulated at the beginning of the cycle.
A “cup with handle” is forming
A key pattern in the technical analysis of financial markets that captures the attention of traders is what is known as the “cup with a handle”, a figure that usually anticipates the beginning of a bullish rally.
The cup with handle is an indicator highly valued by traders. Fountain: TradingView.
The pattern forms first with the cup and happens after the asset’s price suffers a significant drop. Then, a gradual recovery occurs until a curve is completed.
Immediately afterwards, the price retraces slightly, entering a consolidation zone similar to that of a cup handle. In the technical analysis of financial markets, This figure is an indication that SOL is in a position to break the resistance of $175 and then exceed $260, the all-time high (ATH) set in November 2021.
According to TradingViewthe target that the financial asset can reach is determined “by the technique of measuring the distance from the right peak of the cup to the bottom of the cup and extending it in the direction of the break.”
Assuming that this rule is followed, SOL price could climb above $300.
Beyond the technical analysis tools, it is worth asking what could be the macroeconomic events or data that could act as a catalyst for the price of the cryptocurrency to skyrocket to a new ATH.
A good closing of “uptober”
As has historically happened, October has been a bullish month for bitcoin (BTC). For that reason, traders call it “uptober”, in a play on words that translates as “October up”.
It is due to the trend that the market has shown for several years, in which the price of the digital currency created by Satoshi Nakamoto It tends to increase in the tenth month of the year.
Bitcoin performance month by month from 2013 to October 2024. Source: Coinglass.
Although BTC performance is lower than expected and its price fails to stay above $68,000a good closing of the month could be key for SOL.
What happens is that cryptocurrencies tend to follow the price of bitcoin. In other words, If BTC goes up, the rest of the market goes up too.
Elections in the United States
The electoral contest on November 5 in the United States is a turning point for bitcoin (BTC) and cryptocurrencies. What happens is that digital assets were part of the campaign and both the Republican candidate, Donald Trump, and the Democratic candidate, Kamala Harris, have expressed their support for the industry.
In the specific case of solana, a change of administration in the Securities and Exchange Commission (SEC) of that country could be key to promoting its institutional adoption.
As CriptoNoticias already reported, VanEck, a digital asset firm, submitted an application before the organization currently headed by Gary Gensler to launch on the market a SOL-based exchange-traded fund (ETF).
The Democratic Party candidate, Kamala Harris, and the Republican Party candidate, Donald Trump. Source: ppllstatics.
In this regard, the head of digital asset research at the VanEck firm, Matthew Sigel, assured that a SOL-based financial product “It will have a great impact on the cryptocurrency market” and clarified: “They can be approved, but with another president at the SEC.”
In its court filing against Binance, the SEC stated that Solana’s native currency is a security title (security) not registered and therefore must be regulated. In its arguments, the US organization points out that there is evidence that SOL is an action of Solana Labs, the organization that builds products to expand the ecosystem of that network.
For his part, Nate Geraci, president of ETF Store, had indicated that it is unlikely that solana ETFs be approved in the short term. Furthermore, he said:
“It will likely take a Donald Trump administration for the solana ETF to be approved, at least in the short term. The Kamala Harris administration would theoretically maintain an SEC with Gary Gensler and there has been no indication that they intend to embrace cryptocurrencies at this time.”
Nate Geraci, president of ETF Store.
Increased activity on your network
In addition to the expectations raised by a solana ETF, there are other factors that are contributing to its growing adoption of its network, as well as the emergence of innovations such as pump.fun, which highlight its strength in the world of cryptocurrencies.
The great adoption of pump.funthe memecoin creation platform of the Solana ecosystem, which has boosted the price of SOL in recent times.
The launch of this platform attracted a large number of users to the network, which translates into greater activity and liquidity in the ecosystem.
According to data from Dune Analyticspump.fun facilitated the creation of over 2 million memecoins, which They generated more than 998,646 SOL, the equivalent of 172.5 million dollars.
Although meme cryptocurrencies lack practical utility, the platform’s success shows that they are currently an important factor in the digital asset market.
This increased activity, coupled with external factors such as the US elections and favorable results for the cryptocurrency industry, could push SOL to a new high. This, as long as it manages to overcome with sufficient volume the resistance levels that have prevented the cryptocurrency from entering a bullish cycle.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
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